RBZ allots record amount at auction

RBZ allots record amount at auction

Harare (New Ziana) – The Reserve Bank of Zimbabwe on Tuesday allotted the highest amount of foreign currency to bidders since the weekly auction was introduced five months ago.

The allocation of US$32.96 million, a record since June, came as the Zimbabwean dollar slid by 11 cents against the greenback to $81.82.

The previous highest amount allotted at the auction was US$31.39 million on November 10.

Statistics from the RBZ showed that highest accepted rate was $88.33 while the lowest accepted rate was $80.

At least US$30.63 million was allotted to buyers at the main auction while US$2.32 million went to bidders at the small to medium scale enterprises auction.

A total of 434 bids were accepted at the auction while 36 were disqualified.

The local unit has largely stabilised since the auction system was introduced in June, when the rate was still fixed at US$1 to ZWL$25.

At the same time most companies, especially big enterprises listed on the Zimbabwe Stock Exchange, have lauded the auction system for availing to them foreign currency at an affordable rate which has brought about pricing stability.

There however remain concerns on delays in the processing of allotted funds which the central bank has said it is working on.

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