Zimbabwe’s foreign currency earnings registered a 29 per cent growth to US$4 billion in the first six months of this year, compared to US$3.12 billion achieved in the same period last year.
Despite the COVID-19 pandemic, which forced global economies to shut down under strict lockdowns, disrupting production, trade and supply channels, Zimbabwe’s foreign inflows have remained buoyant.
This was revealed by Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya in his 2021 mid-term monetary policy review on Thursday. He said:
On account of the strong external sector performance, foreign currency receipts have remained buoyant, with US$4.02 billion having been received in the first half of the year, representing a 29.1 percent increase in foreign currency supply into the economy.
Of this amount, Diaspora remittances through the formal system amounted to US$649 million, an impressive 73 per cent increase from the US$374.6 million received during the same period in 2020.
The central bank chief also expressed confidence that the current stability of inflation would continue in the outlook period.
He said the external sector had largely been driven by the recovery in the global economy, projected to expand by 6 per cent this year, which has sparked a rally in commodity prices.
Similarly, tobacco prices have been firmer at an average of US$2.92 per kilogramme during the just ended marketing season compared to last year, which helped show up foreign exchange earnings.