$2.7 Million Exchange Rate Loss For Simbisa

Simbisa Brands reportedly incurred a $2.7 Million net foreign exchange rate loss for the year ended 30 June 2019 Newsday reports. This was mainly due to revaluation of foreign-denominated assets and liabilities following the reintroduction of the Zim Dollar.

Simbisa’s Board Chairman Mr Addington Chinake released a statement following their financial results and said:

A net foreign exchange loss of $2,7 million includes exchange losses arising from the revaluation of foreign denominated assets and liabilities on the Zimbabwe balance sheet. These balances were previously carried at an exchange rate of 1:1 up to February 22, 2019 and revalued using applicable interbank rates thereafter,

Simbisa is not the only company that incurred such losses, ZESA and other companies also lamented the same problem. The Zim Dollar was reintroduced on 24 June 2019 thereby ending the multi-currency system.

More: NewsDay

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