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ABOUT 90 percent of the country’s foreign currency is now circulating in the formal market thereby stabilising the exchange rate and stimulating economic growth, Finance and Economic Development Minister Professor Mthuli Ncube has said.
TechnoMag has gathered that foreign currency deposits in nostro accounts now sit at about US$1,2 billion while local currency deposits are at ZWL$80 billion.Nevertheless this does not necessarily translates into jobs for the formal market as most are informally employed whilst many Zimbabweans still argue on trying to make earns meet.
As a result, the parallel market, which has in the past hamstrung the economy, has been subdued due to growing confidence in the local currency, which is now in demand.
Economist and member of the Reserve Bank of Zimbabwe Monetary Policy Committee Mr Persistence Gwanyanya said:
“Deposits currently amount to $80 billion in terms of local currency and the nostro deposits are at $1, 2 billion. So you see there has been a big improvement if you compare with previous years.”
The RBZ foreign exchange auction system has produced positive results since its introduction in June last year, reducing annual inflation to 194 percent in April this year from 837 percent in July last year.
Economist and member of the Reserve Bank of Zimbabwe Monetary Policy Committee Mr Persistence Gwanyanya said:
“Deposits currently amount to $80 billion in terms of local currency and the nostro deposits are at $1, 2 billion. So you see there has been a big improvement if you compare with previous years.”
RBZ Governor Dr John Panonetsa Mangudya’s foreign exchange auction system has produced positive results since its introduction in June last year, reducing annual inflation to 194 percent in April this year from 837 percent in July last year.
Government predicts that the economy will finish the year stronger with inflation estimated at 15 percent, while the economy will grow by 7, 4 percent.
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