Zimbabwe mining threatened by foreign payment delays – CNBC Africa

Zimbabwe mining threatened by foreign payment delays – CNBC Africa – Mining generates more than half of Zimbabwe’s foreign exchange and should be given priority by the central bank when making offshore payments, Chamber of Mines economist Pardon Chitsuro told a parliamentary committee. Zimbabwe introduced a so-called bond note currency, which is denominated in U.S. dollars, in November in a bid to ease cash shortages, but long queues continue outside banks while U.S. dollars are slowly disappearing from circulation. Some businesses, especially those importing goods, are offering discounts on cash purchases in U.S. dollars, while charging more for mobile or card transactions. Mining companies need to import machinery and inputs such as explosives and chemicals. Importers say they are struggling to pay for goods abroad because accounts held by local banks overseas have been depleted of foreign currency. “We have been facing a foreign payments gridlock with delays of up to 12 weeks impacting negatively on production,” Chitsuro said.