Mangudya Admits ‘Zim Has No Capacity To Build Forex Reserves’

As uncertainty continues to hover over Zimbabweans and business, Reserve Bank of Zimbabwe (RBZ) governor John Mangudya has said that the country has no capacity to build up foreign currency reserves. The past year has seen cash shortages and the debate on increasing bond notes in circulation. The economic status has caused some businesses to shut down while there have been fears of commodity shortages and price increases.

Speaking last week the governor said, “Zimbabwe is living from hand to mouth and has no capacity to build foreign currency reserves from export earnings.”

He added, “What we need in Zimbabwe, first and foremost let’s deal, with confidence-building measures then, when that happens we go outside the country and leverage on your minerals underground and get $10 billion and $20 billion outside.”

Mangudya said there was the need for structural and fiscal reforms to enable the country to build the reserves.