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Monday, June 5, 2023

Strong external sector performance to anchor currency stability

Article By Davison Vandira

ZIMBABWE’s Strong External Sector Performance has seen foreign currency receipts growing by 23 percent this year to surpass the 10 billion United States dollar mark for the first time in the country’s financial history.

According to official statistics released by the treasury, the country generated US$8 billion in foreign currency receipts last year and the exponential growth continued this year with US$10 billion being accounted for by the end of November.

The key drivers of the significant growth in foreign currency receipts include mineral commodities such as gold and platinum group of metals as well tobacco and diaspora remittances.

This has left Economic analysts convinced that the country is now in a better position to build forex reserves sufficient to defend the exchange rate ahead of a very demanding 2023 financial year.

“These financial statistics are very encouraging in that they are moving to consolidate gains which the country had realized in terms of foreign exchange market stability, this also means that funds are available to Zimbabwe for the importation of essentials,” said Batanai Matsika an economic analyst.

Economists firmly believe that the availability of the greenback will culminate in enhanced stability of the local currency, which will trigger the economy’s competitiveness against its regional counterparts.

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