Harare, (New Ziana) – The Reserve Bank of Zimbabwe (RBZ) said on Wednesday it successfully raised $200 million it had targeted in its first treasury bill (TBs) issue this year.
The central bank on Monday returned to the market for the first time in 2020 to mobilise funds to support government programmes through 272-day TBs.
Following the successful action, the RBZ said the issue had been oversubscribed with total bids amounting to $270 million.
The highest rate on offer was 30 percent per annum, while the lowest
was 14 percent.
Out of the total bids, $200 million was allotted.
The issue was targeted only at commercial banks, the Post Office Savings Bank and the Infrastructure Development Bank of Zimbabwe.
The TBs offer came with an open tender on a yield basis interest rate and other special features which included prescribed asset status, liquid asset status, tax exemption as well as acceptability as overnight accommodation by the central bank.
Government resumed issuance of TBs last year as one of a few windows it has to mobilise budgetary support as Zimbabwe has gone for years without external support.