Zimbabwe’s foreign currency situation has significantly improved due to increased inflows from agriculture and mining, with the central bank allocating at least $100 million to banks weekly since the second week of April to meet critical foreign payments and settling outstanding obligations.

The increased inflows of foreign exchange were also supported by draw-downs from the nostro stabilisation facility availed by the Afreximbank.

The allocations, since the second week of April this year, entailed funded bank accounts only. This has significantly reduced the real demand for foreign exchange and reduced the foreign payments backlog by more than 50 percent to $185 million.

RBZ governor Dr John Mangudya said the allocations went towards meeting various foreign currency demands that include essential imports and foreign payments, inputs for industrial production and discharging outstanding foreign payments obligations.