$600m nostro facility secured

Business Editor
THE Government has secured a $600 million nostro-stabilisation facility from AfreximBank to boost the country’s foreign exchange receipts and enhance efficient procurement of key inputs for the productive sector.

“The bank has negotiated for an enhanced nostro stabilisation facility of $600 million from Afreximbank to manage the cyclical nature of Zimbabwe’s foreign exchange receipts,” Reserve Bank of Zimbabwe Governor, Dr John Mangudya, said yesterday in his mid-term monetary policy statement.

“This facility shall be available for drawdown after the closure of the tobacco selling season by the end of August 2017.

“Together with the efficient foreign exchange measures, this nostro stabilisation facility shall ensure that the revival of firms is strengthened and that critical imports of fuel and electricity are assured.”

The Governor stressed the need to ensure that the nostro stabilisation facility was supported by a continuous stream of export receipts, saying doing so would help improve the efficient utilisation of foreign exchange and bring equity in the foreign exchange market.

As such, he said, foreign exchange receipts from platinum and chrome would be treated in the same manner as gold, diamonds, tobacco and cotton.

“This policy measure, which is with immediate effect, is consistent with best practice in other jurisdictions that include Angola and Nigeria where fuel foreign exchange receipts are managed by the central banks, just like what diamonds are to the Bank of Botswana and copper to the Bank of Zambia,” said Dr Mangudya.