Zim suffers $185m foreign payment backlog

Harare - Zimbabwe has a foreign payments backlog of approximately $185m as the country continues to grapple with depleted nostro accounts, the Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mangudya said in a statement released on Wednesday.

The governor however said the central bank has managed to inject $100m into the economy every week since mid-April, thanks to the surging forex earnings from the agriculture and mining sectors, coupled with the Nostro stabilisation facility availed by Afreximbank.

Mangudya added that the allocations by RBZ have managed to decongest foreign payments by more than 50%, to leave the backlog currently standing at $185m.

There was an improvement in cash deposits at banks since the end of the Easter holidays, he said, which resulted in cash deposits at banks and Nostro holdings increasing by 50% to $450m.

Magudya also said the country has $140m worth of bond notes, $23m bond coins and an estimated $400-600m in circulation in the economy. 

He also assured that the central bank will continue to provide forex under this arrangement from an average of 25% of foreign exchange resources it receives from tobacco and mining exporters.

The latest development comes at a time banks have been struggling to process foreign payments, due to the depleting nostros. This has seen companies failing to pay for imported raw materials, thereby threatening industries.

Zimbabwean companies have also not been able to remit dividends to their foreign shareholders due to limited availability of cash. 

BAT Zimbabwe and AB InBev associate Delta Corporation are some of the companies that have reported their challenges in remitting dividends declared due to delays in receiving the relevant exchange control approvals.