Staff Writer 9 August 2017
HARARE – The Reserve Bank of Zimbabwe has negotiated for an enhanced
nostro stabilisation facility of $600m from Afreximbank to manage the
cyclical nature of Zimbabwe’s foreign exchange receipts.
Economic experts said this is positive in the short-term as banks have
been struggling to settle maturing lines of credit.
The depletion of nostro balances has been blamed in part on the perennial
current account deficit. Continued foreign payments challenges have made
the country a less preferable destination of foreign capital as generally
investors invest where they can withdraw.
These payments challenges have also made local companies struggle to
procure some necessary raw materials and build up unnecessary costs to
Equity Axis said the facility – a stop-gap measure – may help smoothen
transactions in the short-term.
“Serious structural reforms are needed to take the country out of this
challenge. Measures that will ensure productivity and competitiveness are
therefore necessary,” it said.