Zimbabwe dishes out US$5.5 billion in foreign payments in 11 months

Zimbabwe has paid out US$5.5 billion in foreign payments in the past 11 months with 69% coming from foreign currency accounts and only 24% from the foreign currency auction introduced in June last year.

According to the Reserve Bank of Zimbabwe US$1.3 billion was disbursed through the auction up to the end of last month while US$3.7 was obtained from foreign currency accounts.

Only 7 % was made though the interbank market.

Some 3 450 businesses, 1 423 large companies and 2 027 smaller companies benefitted from the auction with large companies getting US$1.2 billion and small companies US$103 million.

Figures released by the central bank showed that 42% of the money allotted through the auction was for raw materials, 18% for machinery and equipment and 9% for consumables.

Fuel, electricity and gas got only 7 % while pharmaceuticals and medicinals got 6%.

Zimbabwe is cracking down on businesses using black market pricing arguing that this has the potential to totally destabilise the country’s economy.

With nearly 70% of the money coming from foreign currency accounts, Deputy Finance Minister Clemence Chiduwa asked why companies would want Zimbabwe dollars when they made payments in United States dollars unless they had ulterior motives.

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