RBZ secures $600 million nostro facility

RBZ secures $600 million nostro facility
Published: 09 August 2017
The Reserve Bank of Zimbabwe has negotiated for an enhanced nostro stabilisation facility of $600m from Afreximbank to manage the cyclical nature of Zimbabwe's foreign exchange receipts.

Economic experts said this is positive in the short-term as banks have been struggling to settle maturing lines of credit.

The depletion of nostro balances has been blamed in part on the perennial current account deficit. Continued foreign payments challenges have made the country a less preferable destination of foreign capital as generally investors invest where they can withdraw.

These payments challenges have also made local companies struggle to procure some necessary raw materials and build up unnecessary costs to businesses.

Equity Axis said the facility - a stop-gap measure - may help smoothen transactions in the short-term.

"Serious structural reforms are needed to take the country out of this challenge. Measures that will ensure productivity and competitiveness are therefore necessary," it said.
- dailynews
Tags: RBZ,

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