Reserve Bank of Zimbabwe (RBZ) is working with the African Export-Import Bank (Afreximbank) in enhancing nostro stabilization facilities to support foreign payments,backed by a $1,5 billion facility ,as part of cocktail measures to accelerate economic turnaround.
According to the Monetary Policy Statement issued by RBZ Governor John Mangudya, the move is a step necessary to protect investors’ funds from country risk, and in doing so, enhancing investor confidence.
“Such guarantees and liquidity support are necessary to protect investors’ funds from country risk, and in doing so, enhancing investor confidence.
“The economy’s foreign currency inflows are on a positive trajectory, largely on account of increasing export receipts that grew by 36% in 2017 from the 2016 level.
“It is therefore important to sustain this momentum for increased foreign currency inflows,” said Mangudya.
He noted that the current export incentive scheme that is funded by bond notes shall be maintained to promote export competitiveness at the current thresholds.
“The scheme which was adjusted to 12.5% for tobacco growers starting this year shall be tweaked to 10% for horticulture, cotton, macadamia and gold producers,” he said.
According to the monetary policy, keeping in mind the end goal to upgrade outside money inflows from tobacco and gold creation, the tobacco input fund office has been expanded.
“In order to enhance foreign currency inflows from tobacco and gold production, the tobacco input finance facility has been increased from the $28 million disbursed in 2017 to $70 million, while the gold support facility has been increased from $74 million (disbursed to 255 entities) in 2017 to $150 million.
“Financing tobacco and gold and other exportable products such as horticulture, mining, tourism, and much more using RTGS funds seated at banks are beneficial for generating foreign exchange for the country. Further, and in line with the tobacco finance order, deserving tobacco,” Mangudy said