Monday , November 30 2020

The Great Heist: Where is Zimbabwe's cash?



Zimbabwe is currently experiencing serious shortages, literally everything from bottled water to bread.

Lines have become a common feature throughout the country, as Zimbabweans still buy the basics.

After the suspension of import restrictions introduced two years ago, the situation was barely normalized.

However, these shortages can be traced back to the limited availability of foreign currencies.

This happens at a time when Zimbabwean banks are exceedingly $ 9 billion (about R129bn) at all times.

Zimbabwe currently uses a multi-currency system that is fixed to the US dollar.

The Treasury and central banks insist that $ 9 billion of banks match the US dollar. But this money can only be used by electronic means and mainly within Zimbabwean borders.

An attempt to withdraw or impose a foreign payment is likely to have a negative result.

There is hardly money in the banks. At the same time, Zimbabwe's export earnings are the highest after reaching $ 6 billion (about R85bn) before the end of the year. The two largest foreign currency users in the country, gold and tobacco are always high in terms of production.

The authorities argue that this is a sign of a growing economy, and demand for cash has strengthened especially in foreign currency. But where does the forex come from, because everybody claims that they do not get anything from the central bank, which has undertaken to allocate the scarce resource.

It also came up with a priority list that claims to consider the forex as important.

But just last week, a closed shop in one of the country's largest gold miners claimed that it had little money from the central bank within 30 months.

Portfolio investors of the Zimbabwean Stock Exchange have long since resigned from repatriating their investments and are still considered by the Zimbabwean Central Bank (RBZ) to be of primary importance.

Eskom is said to be threatening to reduce power supplies to the South African country without paying the imported energy.

Given that Zimbabwe's foreign currency loans are the highest since the dollar calculation, it is difficult to explain how you can feel these mental deficiencies.

The import bill of more than $ 5.8 billion (about R83bn) refers to the country's strong import of imported goods, but because of the shortage of many industries and claims that they do not receive foreign exchange, it raises a number of questions.

He points to the underworld where cash must disappear. You have already claimed claims that government and central bank officials are occupying this underworld where cash has been transferred.

Last month, RBZ suspended four senior officials after arguing that the currency was fueling an illegal market. The cartel's needs in the fuel industry also stood, which also faces serious shortcomings, and still receives the largest foreign currency position.

It is difficult to explain that fuel imports may increase by more than 50% in one month, but the country is still missing.

Do you import money, or is it a big deal, and you pull the currency out of the country?

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