HomeBusiness DigestZim needs US$200m monthly for imports

Zim needs US$200m monthly for imports

Roadwin Chirara

ZIMBABWE requires over US$200 million a month to cater for essential imports such as fuel, power, medicines and requirements.

ans-serif”>This was revealed by Reserve Bank of Zimbabwe deputy governor Nicholas Ncube at the Zimbabwe National Chamber of Commerce annual congress held in Kariba last week

“Zimbabwe requires over US$200 million a month for normal import requirements,” Ncube said.

He said measures had been put in place to encourage inflows of much-required foreign currency.

The country’s foreign currency is availed through an auction system introduced last year which has completely failed to meet the needs of industry and commerce.

The amount on offer was increased to US$68 million monthly in May last year – still a far cry from what the country requires.

At the foreign currency auction held on Monday, the local currency hit $10 000 against the US dollar, with the average rate on close of trade standing at $10 150 per US dollar.

The official diaspora rate is currently pegged at $9 000 against the greenback after it was devalued by central bank governor, Gideon Gono in his monetary policy review last month.

At the Monday auction, the RBZ availed US$12,5 million against total bids of US$168,3 million.

Total bids received stood at 6 020 with over 5 871 being rejected, which is about 90% of the bids.

The highest bid submitted on Monday was of $10 178 against the US dollar,

with the lowest bid of the day being of $10 055.

The central bank has only been able to avail US$100 million through its foreign currency auction system.

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