THE Reserve Bank of Zimbabwe (RBZ) last year secured US$900 million worth of funding packages from local, regional and international partners, to support critical foreign exchange requirements and bolster economic growth, businessdigest can report.
The amount accessed in 2023 represented an 11% increase from funds accessed by the bank in 2022, according to the central bank's financial results for the year ended December 31, 2023.
“The funds from accessed foreign exchange facilities went towards providing critical liquidity to the economy through the wholesale foreign exchange auction system and the retail auction system, as well as restructuring some of the liabilities,” the report reads in part.
“The wholesale foreign exchange auction system and the retail auction system provided foreign exchange to the economy for the importation of essential raw materials and equipment, machinery for the manufacturing and construction sectors, fertilisers, crude soya bean oil, medicals, agro-chemicals and other raw materials and services for use by industry.”
The apex bank stated that all offshore borrowings were structured against statutory export receivables from high-value commodities, including minerals.
The RBZ announced a significant shift in its foreign exchange policy early this year, discontinuing the foreign exchange auction system (FEAS) and adopting a market-determined exchange rate system.
The move coincided with the introduction of a new structured currency — the Zimbabwe Gold (ZiG).
In a directive to authorised dealers, the RBZ announced that the FEAS, last held in December 2023, had been officially terminated.
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Outstanding auction allotments would be converted into a two-year ZiG-denominated investment instrument with a 7,5% interest rate per year, providing a clean slate for the new system while preserving value for recipients.
The core of the new system is a willing-buyer-willing-seller trading arrangement.
Authorised dealers, including banks and bureaux de change, should purchase foreign currency from sellers at a market-determined exchange rate and sell it to importers with legitimate foreign currency requirements.
The report also indicates that the African Export-Import Bank (Afreximbank) consistently paid dividends, with the bank receiving US$9,7 million in 2023 for the year ended December 31, 2022.
The central bank is a shareholder in Afreximbank on behalf of Zimbabwe.
The unbundling of Fidelity Printers and Refiners (Pvt) Limited into two private entities, Fidelity Gold Refinery (Pvt) Ltd (FGR) and Printing & Minting Company of Zimbabwe (Pvt) Ltd (PMCZ), was finalised in the period under review.
The bank made additional capital injections totalling ZW$20 billion (US$3,3 million) in PMCZ, Aurex, Homelink and Infrastructure Development Bank of Zimbabwe during the year. ZimSwitch and the Export Credit Guarantee Company declared and remitted dividends to RBZ amounting to ZW$1,7 billion (US$278 460) during the year under review.
