Zim receives $961 million IMF SDRs

By Nkosana Dlamini/Agencies

Treasury has confirmed receiving equivalent of $961 million in Special Drawing Rights (SDR) to Zimbabwe from the International Monetary Fund, funding which both Finance Minister Mthuli Ncube and Reserve bank of Zimbabwe governor John Mangudya said shall help shore up the country’s fragile economy.

The funds disbursed are part of $650 billion the global financier is distributing to its members.

The IMF’s largest-ever distribution of monetary reserves will provide additional liquidity for the global economy, supplementing member countries’ foreign exchange reserves and reducing their reliance on more expensive domestic or external debt.

SDRs are reserve assets issued by the IMF, backed by dollars, euros, yen, sterling and yuan.

“The immediate effect of this support from the IMF is to increase the foreign exchange reserves position of the country by $961 million,” Ncube and central bank governor John Mangudya said in a joint statement.

“This will go a long way in buttressing the stability of the domestic economy.”

The funding comes as the country grapples myriad challenges worsened by an unstable domestic currency.

Businesses have to make do with a yawning discrepancy between the official exchange rate which stands at Z$86 against a single US dollar whereas the parallel market exchange rate is at US$1: Z$150.