Gono to visit Malaysia

wo countries.
Central bank sources this week confirmed Gono’s visit to Kuala Lumpur and said the RBZ chief would hold meetings with Bank of Malaysia governor, Malaysian bankers and business leaders whose companies export to Zimbabwe.
Gono, who recently botched two deals with a South African fertilizer company and another with the Russians, is expected to hold discussions with representatives of Malaysian oil company Petronas on ways of improving fuel supplies to Zimbabwe.
“He is going to negotiate with them on other ways they can assist Zimbabwe in the procurement of fuel,” a source said. It is believed Gono might take the opportunity to negotiate a facility under which Zimbabwe would pay Petronas in local currency for fuel imports.
Sources said Gono would also discuss Zimbabwe’s foreign currency crisis with his Malaysian counterpart. Economists and industry groups have warned that the fuel and hard cash crises could decimate Zimbabwe’s manufacturing industry, which has so far lost more than 800 firms in seven years.
The Zimbabwe-Malaysia Trade and Payments facility, abruptly suspended by the Zimbabweans, is also expected to come up for discussion. The facility, which became operational in August 2000, was officially suspended by the RBZ, although banking industry sources said the pact had not been in operation for more than three years now. Under the agreement, imports and exports were paid for in the local currencies of the countries, with imports by Zimbabwe being offset against proceeds from exports by local firms to Malaysia and vice versa. The difference would be settled in hard currency after three months. The decision to suspend the facility on the Zimbabwean side was caused by the lack of interest in the arrangement by local exporters, which resulted in a huge trade imbalance between the two countries.