Zimbabwe receives US$961 million from the IMF

24 Aug, 2021 - 11:08 0 Views
Zimbabwe receives US$961 million from the IMF Professor Mthuli Ncube

The Sunday News

Judith Phiri, Business Reporter

THE Government has officially announced that Zimbabwe has received US$961 million from the International Monetary Fund (IMF) via the institution’s Special Drawing Rights (SDR).

SDR refers to supplementary foreign exchange reserve assets that are maintained by the IMF and availed to member countries if they so choose. In a statement this morning, Finance and Economic Development Minister Professor Mthuli Ncube and the Reserve Bank of Zimbabwe Governor Dr John Mangudya said they would like to advise the public on the release of SDR 677 436 012 by the IMF to Zimbabwe.

“We would like to advise the public that Zimbabwe has received SDR 677.4 million (USD 961 million) from the International Monetary Fund (IMF) under the IMF’s USD650 Billion SDR allocation earmarked to provide additional liquidity to the global financial system. The funders were deposited in the Reserve Bank of Zimbabwe account with the IMF for value 23 August 2021,” read part of the statement.

It said that the immediate impact of the support from the IMF is to increase the foreign exchange reserves position of the country by US$961 million and it will go a long way in buttressing the stability of the domestic currency.

The statement said that the funds will be used prudently, with utmost accountability, to support social sectors namely health, education and vulnerable groups.

They will also be used for productive sectors that include industry, agriculture and mining, infrastructure investment covering roads and housing, and foreign currency reserves and contingency fund, to support domestic currency and macro-economic stability.

“We would like to express our great appreciation to the IMF for this disbursement which shall be used transparently in line with the IMF guidance note,” read part of the statement.

 

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