HARARE, May 8 (Xinhua) -- Long queues of motorists looking for fuel have resurfaced in Harare as petrol and diesel shortages persist amid rising demand as schools re-opened for the second term.
Diesel appears to be the more affected commodity which continues to be sold at a premium on the black market.
Reserve Bank of Zimbabwe (RBZ) governor John Mangudya told the state-controlled Herald newspaper that the central bank had availed adequate Letters of Credit (L Cs) into the market to ensure availability of critical imports such as fuel.
"We have made sure that L Cs will be available to fuel providers and that they will be able to use them to access fuel going forward," Mangudya said.
The paper said Wednesday that L Cs helped reduce the payment risks on international trade transactions with a buyer's bank guaranteeing payment to a seller if certain criteria are met.
Fuel is one of the biggest consumers of foreign currency in Zimbabwe.
The country has been facing foreign currency shortages for several years because of limited productivity for the export market and imports much more than it is exporting.
