Connect with us

Hi, what are you looking for?

LOCAL NEWS

RBZ: 70% Of Domestic Expenditure Is In US Dollars

RBZ: 70% Of Domestic Expenditure Is In US Dollars

The Reserve Bank of Zimbabwe (RBZ) has said about 70% of domestic expenditure is in US dollars.

This was announced by RBZ Governor John Mangudya in the 2023 Monetary Policy Statement seen by ZiMetro News.

Mangudya also said as of December 31, 2022, the Foreign Currency Accounts (FCA) deposits in the banking system accounted for 64.2% of total deposits, with the remainder being ZW$ deposits. Said Mangudya:

Transactional activities in the retail and wholesale sectors also points to the same structure of currency composition as shown by recent Confederation of Zimbabwe Industry (CZI) surveys, which reported that on average USD sales contribute 66% to foreign currency generation for the businesses. The dual currency structure of the economy is corroborated by estimates by the Zimbabwe National Statistics Agency (ZimStat) at Classification of Individual Consumption by Purpose (COICOP) division level.

Mangudya also noted that domestic inflation reflects the significant foreign currency inflows in the economy by adopting blended inflation as the country’s reference inflation and reflects the dual currency structure for the following reasons:

Advertisement. Scroll to continue reading.

1). Total forex receipts at US$11.6 billion in 2022 were the highest FX inflows ever received in the country.

2). About 70% of domestic expenditure is in US dollars; and

3). Foreign currency deposits and loans constitute about 65% of total banking sector deposits.

The central bank also said the inflation developments largely reflect movements in the exchange rate as prices in USD have been relatively stable and, in some instances, declining.

RBZ Forex Auction 31/01/2023: Zimbabwe Dollar Continues To Lose Value Against USD
Mangudya said this points to the need to sustain exchange rate stability to anchor inflation expectations and stabilize prices under the dual currency environment.

Advertisement. Scroll to continue reading.

The Zimbabwean economy has been informally re-dollarising in recent years as the local currency has continued to shed value against other currencies, mainly the USD.

In other News On ZiMetro…

Methodist Reverend in Witchcraft Scandal, Names a Pig After Family Member and Slaughters It…Family Member Dies!

 

A pastor for the United Methodist Church has come under fire from family members who claim that she divides the family and does rituals.

Methodist Reverend in Witchcraft Scandal, Names a Pig After Family Member and Slaughters It...Family Member Dies!

The Mutasa District’s Reverend Lilian Mufute is the target of criticism from her family and several congregation members who saw what she did.

Advertisement. Scroll to continue reading.

According to reports, Reverend Mufute performed ceremonies at her property with her brother-in-law, Josphat Mufute, a sangoma...more here

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Catch More Updates Below

BUSINESS NEWS

The Reserve Bank of Zimbabwe (RBZ) has devalued the local currency, pushing its exchange rate to ZW$24.39 against the US dollar. This adjustment comes...

BUSINESS NEWS

Reserve Bank of Zimbabwe (RBZ) Governor John Mushayavanhu says the central bank does not intend to implement a policy requiring recipients of diaspora remittances...

BUSINESS NEWS

The Reserve Bank of Zimbabwe (RBZ) is set to inject US$50 million into the interbank foreign exchange market. This move aims to bolster bank...

BUSINESS NEWS

Businesses are considering taking legal action against the Reserve Bank of Zimbabwe (RBZ) over its decision to withhold payment for outstanding foreign currency auction...

BUSINESS NEWS

The Reserve Bank of Zimbabwe (RBZ) has made a strategic move to bolster the stability of the Zimbabwean Dollar (ZiG) by adjusting the foreign...

BUSINESS NEWS

“All fuel sales will exclusively accept ZiG as payment”: Guvamatanga Finance, Economic Development, and Investment Promotion Permanent Secretary George Guvamatanga announced that all Government...

BUSINESS NEWS

The Reserve Bank of Zimbabwe (RBZ) has directed all banks and microfinance institutions that are not compliant with the regulatory minimum capital requirements not...

LOCAL NEWS

Demand Surges for RBZ Gold-backed Digital Tokens: ZW$5.2 Billion Allocated RBZ Gold-backed Digital Tokens Issue No. 44/2024 saw a flurry of interest as the...

Advertisement