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Harare Bureau
THE Reserve Bank of Zimbabwe will in the next fortnight release US$300 million under the Export Incentive Facility to stimulate production and ease cash shortages.
RBZ Governor Dr Mangudya said the US$300 million facility will be released as soon as the present US$200 million bond note-linked regime expires.
This will bring the bond notes in circulation to US$500 million, all supported by Afriexim Bank.
He said: “The new export incentive will be a continuation as there shall be no gap to say we wait for days to release the new bonus incentives.”
Dr Mangudya explained that there was a difference between cash and foreign currency shortages arguing that there was about US$2 billion in the banking system.
The RBZ chief said the export incentives would spur production and foreign currency generation. He dismissed claims that the new export incentive was a way of bringing back the Zimbabwe dollar through the backdoor.
In addition to the Standby Liquidity Support Facility, Afrexim Bank has also availed an enhanced nostro stabilisation facility of US$600 million. This facility will be available for drawdown after the closure of the tobacco selling season by the end of this month.
The central bank is pushing for fiscal consolidation, improvement of the investment climate and promotion of free banking to promote production.
There has also been growing calls for the setting up of a Commercial Crimes Court to deal with corruption and illicit financial flows.
derick.khumalo