Harare (New Ziana) – Zimbabwe recorded US$7.7 billion in foreign currency earnings between January and August this year, a 32.4 percent increase from the same period last year, the Reserve Bank of Zimbabwe said on Tuesday.
High commodity prices and Diaspora remittances are driving the increased foreign currency earnings this year, as was the case last year.
Exports of agricultural produce and manufactured goods, as well as development partner support also shore up Zimbabwe’s forex earnings.
Last year, the country achieved a record US$9.7 billion in foreign currency inflows, surpassing the 2013 record of US$7.6 billion.
This year’s target is US$12 billion.
In an update following a meeting of the RBZ Monetary Policy Committee, central bank governor Dr John Mangudya said the economy was generating increased foreign currency earnings.
“Foreign currency receipts stood at US$7.7 billion as at 31 August 2022, representing a 32.4 percent increase from US$5.8 billion recorded during the same period in 2021,” he said.
“The foreign currency receipts compare favourably with the corresponding foreign payments which amounted to US$5.1 billion as at 31 August 2022, translating into a surplus foreign exchange position with attendant positive implications for external sector stability.”
Last year, mineral-dominated export earnings increased by 28 percent to $6.3 billion, while Diaspora remittances increased by 43 percent to $1.4 billion.
Dr Mangudya said the prevailing favourable external sector environment, as reflected by robust performance in foreign currency receipts, would provide further impetus to sustained exchange rate and price stability.
The robust showing, so far, buttresses views by the International Monetary Fund that Zimbabwe’s economy continues to show resilience in the face of significant internal and external shocks due to the sound monetary and fiscal policies which the government is implementing.
In a statement last week, the IMF said; “Zimbabwe’s economy has shown resilience in the face of significant shocks. Russia’s war in Ukraine, the poor rainfall, and price pressures are adversely affecting economic and social conditions in Zimbabwe, already battered by the Covid-19 pandemic.”
The IMF expects Zimbabwe’s economy to grow by 3.5 percent, down from 7 percent last year.
But the government expects the economy to grow by 4.6 percent, down from 5.5 percent that it had initially projected.