The Reserve Bank of Zimbabwe (RBZ) attributed the poor export performance to falling global mineral prices. Zimbabwe's exports are mainly dominated by mineral and agricultural commodities.
"Due to the negative developments in the global economy, prices for most mineral commodities including platinum, nickel and lithium have been declining, negatively affecting export receipts in the economy," RBZ Governor John Mangudya said in a statement issued Tuesday, following a meeting of the RBZ Monetary Policy Committee (MPC) on Monday.
Given the emerging global risks and to maintain exchange rate and inflation expectations, the MPC resolved to reduce the bank policy rate from 150 percent per annum to 130 percent with immediate effect, Mangudya said.
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