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Senior Business Writer

DIASPORA remittances through the official channel registered a 16 percent increase to US$1, 873 billion last year up from the US$1,617 billion received during the same period in 2022, the Reserve Bank of Zimbabwe has said.

International remittances, which comprise transfers by Zimbabweans in the diaspora and international organisations, are a critical source of liquidity in Zimbabwe’s economy with a positive impact on livelihoods across the country.

An estimated three million Zimbabweans are believed to be in the diaspora and they regularly send money back home to sustain their families.

In his inaugural Monetary Policy Statement last week, RBZ Governor Dr John Mashayavanhu said secondary income inflows increased by seven percent from US$3,080 billion in 2022 to US$3,297 billion in 2023.

The increase, he said, was due to higher inward remittances from the diaspora. Personal transfers increased by 9,7 percent to US$2,162 billion in 2023, from US$1,971 billion in 2022.

“Diaspora remittances, through the official channel, amounted to US$1,873 billion, a 16 percent increase from the US$1,617 billion received during the same period in 2022,” said the Governor.

International remittances received through the normal banking system on behalf of International Organisations (NGOs) amounted to US$1,136 million, maintaining the same level as the previous year.

Dr John Mashayavanhu noted that in the first two months of the year, foreign currency inflows have shown signs of strong recovery.

“The foreign currency receipts for January and February 2024 amounted to US$2,2 billion compared to US$1,8 billion received during the same period in 2023, representing a 23 percent increase, driven by strong exports and remittances.”

The recovery in the tourism sector, following the Covid-19 induced disruptions, saw the services exports increasing by 0,75 percent, from US$453,3 million in 2022 to US$456,7 million in 2023.

Freight services increased in line with growing merchandise imports.