Golden leaf marketing season to strengthen currency stability

By Davison Vandira

THE 2022 tobacco marketing season officially kicks off next month in a development expected to significantly improve foreign currency inflows as well as strengthen the Zimbabwe Dollar.

According to the 2021 Reserve Bank of Zimbabwe foreign currency receipts statistics, tobacco is one of the country’s foreign currency earners after gold and diaspora remittances and with its season almost due, there is optimism by financial authorities on improved foreign currency liquidity.

The 2021 tobacco selling season amassed more than US$600 million from a pool of 145 000 registered farmers.

The Tobacco industry and Marketing Board (TIMB) is expecting 200 million Kilogrammes of tobacco from the 125 thousand registered farmers this year.

As a cash and export crop, the golden leaf has been playing a pivotal role in the consolidation and stability of the Zimbabwe Dollar over the past three years hence economic observers are looking forward to enhanced macroeconomic stability during the Tobacco marketing season.

“The coming in of the Tobacco marketing season is good news to the economy for various reasons and chief among them is the prospects of improved forex inflows with a direct benefit of Stabilising the currency market and retaining value for the local currency,” said Titus Mukove, a Development Economist.

Due to prudent policies by the second republic, Zimbabwe is fast retracing its footsteps in agricultural activities, which also acts as a stimulant to industrial growth.