Zimbabwe has received SDR 677.4 million (US$961 million) from the International Monetary Fund (IMF) under the Bretton Woods institution’s USD650 billion SDR allocation earmarked to provide additional liquidity to the global financial system, Finance Minister Mthuli Ncube announced on Monday.
In a joint statement with central bank governor John Mangudya, Ncube said the funds were deposited into the Reserve Bank of Zimbabwe account with the IMF on Monday.
“The immediate impact of this support from the IMF is to increase the foreign exchange reserves position of the country by US$961 million.
“This will go a long way in butttressing the stability of our domestic currency,” the minister said.
SDR refers to supplementary foreign exchange reserve assets that are maintained by the IMF and availed to member countries if they so choose.
Ncube said the funds would be “used prudently, with utmost accountability, to support social sectors namely health, education and vulnerable groups; productive sectors that include industry, agriculture and mining; infrastructure investment covering roads and housing; and foreign currency reserves and contingency fund to support our domestic currency and macro-economic stability.”
The IMF support comes at a time Zimbabwe is trying to boost the performance of its productive sector, which has been facing liquidity challenges, and at a time the country’s infrastructure is in need of improvement.
JN/APA