Reserve Bank of Zimbabwe (RBZ) governor John Mangudya said the central bank has doubled foreign currency allocation to fuel suppliers from $10 million to $20 million per week.
Mangudya said the fuel shortages Zimbabwe experienced last week were a result of rising oil prices on the world market and the cash crisis that has caused shortages of foreign currency. Said Mangudya:
We have discussed with the Ministry of Energy and Power Development and Zimbabwe Energy Regulatory Authority that we now need to allocate $20 million on a weekly basis between using direct allocations, letters of credit and also facilities. We do believe that the country is facing challenges which have to do with supply and demand of foreign currency. The supply of foreign currency (low) is due to the pressures this economy is going through.
More: Chronicle