Annual foreign currency deposits up 55pc in August- RBZ

Foreign currency deposits have registered an annual growth of 55,53 percent in August 2021, according to the latest statistics released by the Reserve Bank of Zimbabwe (RBZ).

According to data by RBZ, the foreign currency deposits increased from $86,01 billion in August 2020 to $133,77 billion in August 2021.

This was on the back of an increase in the value of foreign currency accounts (FCAs), from US$1,03 billion in August 2020 to US$1,55 billion in August 2021.

Meanwhile, the Zimbabwe Economic Review also reports that growth in FCA deposits was facilitated by revaluation changes, owing to the movement of the exchange rate from $83,40 per US$1 in August 2020 to $86,06 per US$1 in August 2021.

Despite the annual growth, FCA deposits were down month-on-month in the period under review.

Apparently, on the informal market, the rate is way up compared to the $1 to ZW$86.06.

The government is blaming forex dealers for the distortion, however critics say the authorities should put economic fundamentals right.

In recent times, the government introduced the forex auction system, however, it has been open to abuse.

Zwnews