Zimbabwe's exports declined by 9.04 percent from 1.58 billion U.S. dollars in 2004 to 1.43 billion in 2005 due to persistent drought, foreign currency shortages and a delayed re-alignment of the exchange rate, the Reserve Bank of Zimbabwe (RBZ) said on Tuesday.

Presenting his Fourth Quarter 2005 Monetary Policy Review Statement on Tuesday, RBZ Governor, Gideon Gono, said foreign currency cashflows also declined by 0.46 percent during the same period from 1.71 billion U.S. dollars in 2004 to 1.7 billion at the end of last year.

"Underperformance in export receipts was compensated for by increased short-term facilities, a position that has to be reversed in 2006, through greater export growth," he said.

Meanwhile, Gono said gold deliveries remained subdued last year despite the firming in international gold prices and a more favorable exchange rate.

He said gold deliveries to Fidelity Printers and Refiners fell by 37 percent from 21,342 kilograms in 2004 to 13,453 kilograms in 2005 largely due to smuggling.

Large-scale producers, the governor said, delivered 9,666 kilograms with the balance coming from small-scale miners.

"In 2004 small scale producers delivered the bulk of gold, suggesting that in 2005 the precious metal was largely being smuggled out of the country," he said, adding the externalization of precious minerals starved Zimbabwe of the much-needed foreign currency.

The year 2004 saw the country lose 160 million dollar worth of gold to smuggling, Gono said.

He blamed chefs and those in positions of authority and called on the law enforcement agents to help weed out the scourge, which was affecting the country's economy.

Source: Xinhua