Zimbabwe Forex earnings hits US$6.8bn in 2019

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Zimbabwe Forex earnings hits US$6.8bn in 2019


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.

 

Read the original article on The Herald.