Zimbabwe generates US$2,4bn in Q1, 2022

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The Reserve Bank of Zimbabwe (RBZ) revealed that the country generated US$2,4 billion foreign currency in the first quarter of 2022 as a result of its strong economic fundamentals and a cocktail of measures adopted to enhance market confidence and tackling indiscipline.

The US$2,4 billion indicates an increase of 15,9 percent compared to the same period in 2021.

“The foreign currency receipts were against foreign payments of US$1,8 billion, leaving a surplus of US$1,9 billion,” said RBZ governor, Dr John Mangudya, in a latest statement following the latest Monetary Policy Committee (MPC) meeting.

Recently, monetary authorities moved to curtail resurgent price increases in the economy and stabilising the volatile parallel market exchange.

This saw the MPC significantly increase key interest rates and further cutting down the quarterly target for money supply growth.

These measures were seen as a strong demonstration by authorities to double down on existing measures to stem further increases in prices stoked by speculative borrowing, which causes excess growth of money in circulation, thereby driving depreciation of local currency.

“The committee noted with satisfaction that economic fundamentals have remained strong to support a stable exchange rate as evidenced by a favourable current account balance, positive growth of the real sector, public works undertaken by Government, fiscal sustainability and a tight monetary policy stance,” said Dr Mangudya.