Zimbabwe Obtains Loan To Fund Forex

Zimbabwe Obtains Loan To Fund Forex

In a move to ease a shortage of foreign currency on the official interbank currency market, Zimbabwe has secured a $500 million loan.

The Governor of Reserve Bank of Zimbabwe (RBZ), Mr John Mangudya, said that the central bank would start injecting funds from the loan into the official foreign currency market on Monday.

“This amount shall go a long way to stabilise the exchange rates and prices of goods and services in the economy,” Mangudya said.

He however did not disclose the source of the loan.

The loan comes at a time Zimbabwe is experiencing turbulence on its foreign currency and commodities markets.

The exchange rate of the local currency, called RTGS dollar, to the US dollar has been on a free-fall since the end of 2018 and was pegged at 6.5 to the American greenback on the black market on Friday.

It was however pegged at 3.3 to the US dollar on the official interbank market amid fears of mounting pressure for the rate to depreciate.

The shortage of foreign currency has resulted in a declining production and shortages of basic commodities as well as the non-availability of fuel and electricity.