RBZ auction benefits over 2 000 firms in Feb

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Harare (New Ziana) – A total of 2 720 beneficiaries were allotted funding under the main and small to medium enterprise (SMEs) foreign currency auction conducted by the Reserve Bank of Zimbabwe during February. 

In an update, RBZ governor Dr John Mangudya said a total of 823 companies were allotted US$120 143 752 under the Main Foreign Exchange Auction while1 897 small businesses were beneficiaries of US$28 565 721 allotted under the SMEs Foreign Exchange Auction. 

“The bulk of the funds allotted at the auction during the month of February 2022 (64 percent) went towards payment for raw materials (US$54 354 527) and machinery and equipment (US$39 429 531), with the remaining 36 percent of the total allotments going towards payment for consumables (US$17 217 323), services (US$11 552 570), retail and distribution (US$15 366 912), pharmaceuticals and chemicals (US$6 743 499), packaging (US$3 840 155) and fuel, electricity and gas (US$204 956),” he said.
“The total foreign exchange auction allotments for January and February 2022 is US$218 351 521, bringing the cumulative allotments since inception of the Foreign Exchange Auction System to US$2 814 732 334.”
 
The Reserve Bank of Zimbabwe introduced weekly forex auctions in 2020 to improve access to foreign currency.

But, despite its earlier successes-which include price stability and pushing down black market rates, the auction system faced challenges chiefly the late disbursement of allocations.

This has prompted many businesses to turn to the black market for foreign currency which has the net effect of pushing up the parallel market exchange rate.

The central bank has however guaranteed that all auction allotments would be paid within two weeks from the auction date.

New Ziana

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