Fidelity Printers and Refiners (FPR) General Manager Mr. Fradreck Kunaka has blamed limited flights into the country as the major contributor to late payments and cash shortages from the country’s sole gold buyer and exporter.
According to Kunaka the Covid-19 pandemic has limited incoming and outgoing flights which have made the coming of paper money to Zimbabwe very limited, this has also led the shipping of gold to be slowed thus causing a disruption in cash supply.
“There are cash shortages at Fidelity due to the cash movement disruption brought about by the COVID 19 pandemic this means that flights that ship money to Zimbabwe are now limited,” Kunaka said.
In similar circumstances, South African gold refiner RAND REFINERY has limited shipping gold to London because of a lack of commercial flights, adding to the disruption that’s upending the physical bullion market.
Gold miners have been complaining that late payments are forcing them to halt production whilst waiting for payments which has reduced gold production.
Statistics from FPR show that gold deliveries for the month of July tumbled by a staggering 49,3 percent compared to the same month in 2019 after miners delivered only 1 406 tonnes this July compared to 2 776 tonnes in the same month last year.