The central bank of Zimbabwe has sold up to $20 million to banks for trading on the newly launched forex interbank market, however, the money could be exhausted by the end of next week due to the high demand for dollars, banking sources disclosed on Wednesday.
The central bank sold US dollars to a handful of banks on Friday, but Reserve Bank of Zimbabwe (RBZ) governor John Mangudya and Finance Minister Mthuli Ncube have refused to disclose the amount.
“They sold between $15 and $20 million to the banks,” said one executive whose bank bought dollars from the RBZ.
Not long ago, foreign funders had said that they were pulling out of Zimbabwe as international companies limit funding for their local operations in a country that is battling foreign exchange shortages.
Africa Guarantee Fund – designed and funded by the African Development Bank in partnership with Danish and Spanish investors – has withdrawn its investment as the guarantor of investment notes issued by Zimbabwe’s Untu Capital.
Zimbabwe has been facing worsening foreign currency shortages over the past few years and this has crippled imports of key supplies such as fuel, medicines and raw materials for companies.