RBZ Doubles Foreign Currency Allocation To Fuel Suppliers

The Reserve Bank of Zimbabwe will avail foreign currency to fuel suppliers. RBZ governor John Mangudya said the central bank has doubled foreign currency from $10 million to $20 million per week.

The country experienced fuel shortages last week. According to governor Mangudya this has been a result of rising oil prices on the world market. In addition the ongoing cash crisis that has caused shortages of foreign currency.

Mangudya said, “We have discussed with the Ministry of Energy and Power Development and Zimbabwe Energy Regulatory Authority that we now need to allocate $20 million on a weekly basis between using direct allocations, letters of credit and also facilities. We do believe that the country is facing challenges which have to do with supply and demand of foreign currency. The supply of foreign currency (low) is due to the pressures this economy is going through.”