Reserve Bank of Zimbabwe summons banks over forex allocation

Reserve Bank of Zimbabwe governor John Mangudya
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The Reserve Bank of Zimbabwe is set to meet bankers over foreign currency allocations following claims by business that banks are not prioritising the productive sector.

In the wake of a deepening foreign exchange shortage that has seen Zimbabwe accumulate an international payments backlog pegged at $600 million as at May 2017, the country’s main exporters last week approached Reserve Bank of Zimbabwe (RBZ) governor, John Mangudya, for an intervention in the allocation of the scarce forex.

“Yes, it has come to my attention that there are a few banks holding onto foreign exchange and not allocating it to the earners, that is the exporting manufacturers. It is because of this that I will meet with the bankers before end of month so that this is dealt with,” he said at a recent meeting with retailers.

“The reason why we have an export incentive in the first place is so that exporters are motivated. We do not want to frustrate the goose that lays the golden egg.”

Last week, the governor announced that the country would start drawing down a $600 million Afreximbank nostro-stabilisation facility in mid-September, instructing Zimbabwe’s retailers to come up with a list of their pending foreign payments so that they could be approved from the RBZ.

The Confederation of Zimbabwe Industries (CZI) has also appealed for the governor to intervene in the allocation process, pointing out that the central bank imposed import priority list was not being adhered to.-The Source