Zimbabwe forex earnings reached US$6.8 billion 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 2018 Zimbabwe forex earnings of US$7.2 billion.
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.
Zimbabwe forex earnings from diapora remittances increased marginally by 2.6 percent to US$635.4 million although market watchers suggest 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.