The Central Bank in a recent release confirmed that the
end July gross official reserves had reached US Dollars 2180 million, an
increase of 71 per cent over a period of four months. This has been made
possible due to the receipt of the first tranche of the IMF Standby
Facility and also due to a significant absorption of foreign exchange
from the domestic market during the last four months.
The progress achieved has resulted in the estimated
reserves being above the estimated level as expected by the IMF, by end
September 2009, under the standby arrangement. .
The gross official reserves are calculated on the net
outcome of the country’s foreign holdings taking into consideration the
trade balance, which is the difference between the value of exports and
imports of goods, together with the net balance of the services account,
the income account, private remittances and one way transfers The
capital and Financial account together with the receipts by the
Government as Foreign Direct investments, loans stock market inflows and
outflows are also considered in arriving at the net outcome of the
country’s overall balance of payments, popularly described as the gross
official reserves measured in terms of funds available for imports on a
monthly basis.
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