As a follow-up to the 2019 FSSR, a remote TA mission supported the RBZ with the implementation of Basel III liquidity standards. The mission reviewed the RBZ drafts of the LCR and NSFR frameworks, discussed identified material gaps with the BSD management and relevant supervisors, and provided many recommendations on enhancing the drafts of liquidity regulations, monitoring tools, reporting templates, and disclosure. Further actions for implementing Basel III liquidity standards were agreed with the RBZ.
Finance and Development, September 2016
Context. The authorities met all their commitments under the Staff-Monitored Program (SMP), despite economic and financial difficulties. Inadequate external inflows, lower commodity prices, the dollar appreciation, and the El-Niño-induced drought hurt economic activity. The authorities have started to rationalize civil service by exploiting opportunities for cost savings, amended the Public Financial Management and Procurement Acts for Parliament and Cabinet approval, respectively, and rid the financial sector of problem banks and reduced non-performing loans. They garnered broad support for their reengagement strategy from creditors and development partners, in particular their plans to clear arrears to the International Financial Institutions.
This 2014 Article IV Consultation highlights that economic rebound in Zimbabwe experienced since the end of hyperinflation in 2009 has now ended. After averaging 10 percent over 2009–2012, growth fell to an estimated 3.3 percent in 2013, reflecting tight liquidity conditions, election-year uncertainty, weak demand for key exports, competitiveness pressures, and the impact of adverse weather conditions. Inflation continued its downward trend from 2.9 percent (year over year) at end-2012 to ?0.3 percent in April 2014. The medium-term outlook, under the baseline scenario, is for growth to average some 4 percent, as large mining sector investments reach full capacity.