Zim records US$6,8bn forex earnings in 2019

Source: Zim records US$6,8bn forex earnings in 2019 | Herald (Business)

Business Reporter

Zimbabwe received US$6,8 billion in foreign currency receipts for the year ended December 31, 2019 with the bulk of the receipts coming from export proceeds, latest figures from the 2020 Monetary Policy Statement show.

This was, however, a 4,4 percent decline from the US$7,2 billion that was received in 2019.

Notably the biggest source of foreign currency declined after export proceeds decreased by 11 percent to US$3,9 billion from US$4,4 billion prior year comparative.

NGOs’ support was also nine percent lower to US$521 million from US$570 prior year comparative.

The country, however, got a boost after loan proceeds increased 12 percent to US$1,7 billion from US$1,5 billion prior year. The bulk of the loans were extended to the agriculture sector.

Diaspora remittances increased marginally by 2,6 percent to US$635,4 million although market watchers suggests more could have come through informal channels.

A major worry is, however, the decline in Foreign Direct Investment (FDI), which comes at a time the country is making efforts to attract investment into the country.

According to the Central Bank, Foreign Direct Investment declined to US$259 million in 2019 from US$717,1 million in 2018.

Similarly, net portfolio investment inflows declined significantly from US$54,7 million in 2018 to US$3,7 million in 2019.

“The decline in both  FDI and portfolio  investment was, in large part, due to heightened perceived country risk,” said RBZ governor Dr John Mangudya.