RBZ commits to clearing US$175 million foreign currency backlog

By ZBC Reporter

The Reserve Bank of Zimbabwe has pledged to clear the foreign currency allocation payment backlog of 175 million United States dollars within a month.

According to a Monetary Policy Committee (MPC) meeting report released this Monday, the move is aimed at easing pressures of foreign currency in alternative markets that have been driving parallel market rates in the past few days.

The MPC chaired by Reserve Bank of Zimbabwe Governor Dr John Mangudya has also indicated that it is taking measures to fine tune the auction system by prioritising productive sectors of the economy.

Furthermore, the business community and banks are being directed by the committee to ensure they excise customer diligence on foreign currency transactions to sustain stability.

According to the committee resolutions, the move will also cement government efforts to revive the manufacturing industry.

The central bank committee has also announced a partial liberalisation of bureaux de change firms which are now being allowed to allocate a maximum of fifty United States dollars per week to individuals with charges and commissions not exceeding 10 percent.

As part of sustaining current slow-down in yearly inflation, the monetary policy committee resolved to maintain a tight grip on money supply.

The committee also noted strong economic growth outlook based on the recent 961 million United States dollars Special Drawing Rights allocation from the International Monetary Fund (IMF).