By Abdul Rahman Suagibu –
NEW AFRICA BUSINESS NEWS- Freetown, Sierra Leone- The central bank of Zimbabwe has secured $500 million dollar loan from not thoroughly explained international banks to support interbank currency trading from Monday in a bid to give respite to the dollar crunch that has brought fuel and medicine deficiency, Governor John Masngudya mentioned earlier.
The central bank brought to the public official a new local currency in February, the RTGS dollar and launched an interbank trading platform where businesses and individuals could buy and sell US Dollars. Dollars has been scarce on the official market, where a US dollar retrieves 3.4 RTGS dollars compared to the 6.3 RTGS dollars on the b lack market John Mangudya said in the statement that, the central bank would comment to obtain access to $500 million dollars from Monday “To meet the forex payment requirements of business and individuals.”
“This amount shall go a long way to stabilize the exchange rate and prices of goods and services in the economic,” said Mangudya with no capabilities to reveal the source of the loan.
Finance Minister Mithuli Ncube twitted that the loan had been secured from international banks which he didn’t name in the past week, the new currency lost 26% of its value on the black market but is only 3.6% weaker on the official market. The weakening currency has exacerbated inflation, which raced to a new 10 year high of 75.6% in April.
Zimbabwe, has not received funding provenance international lenders (IMF and World Bank) since it failed and obligation on its loan repayments in 1999, and a dollar crunch has aggravated this year leading to shortages of fuel and medicines.
Zimbabwe has rested confidence on the African Exports and Import Bank (Afrexim Bank) for foreign loans by mortgaging future gold export earnings. Mangudya said in March, the central bank last year borrowed $985 million dollars from Afrexim Bank and other Africa lenders to purchase fuel and other critical import.
For New Africa Business News Abdul Rahman Suagibu Reports, Africa Correspondent