RBZ hits half target on latest TB issue

Harare, (New Ziana) – The Reserve Bank of Zimbabwe (RBZ) said on Wednesday it managed to raise half of the $200 million it targeted to mobilise to support government programmes through its latest issue of 272-day Treasury Bills.

The central bank floated the tender, which was open to financial institutions such as commercial banks, building societies as well as the Infrastructure Development Bank of Zimbabwe and the Post Office Savings Bank, on Tuesday for just four hours.

Announcing results of the offer, the RBZ said it had received total bids worth $105 million and allotted the same amount.

The highest interest rate offered was 15 percent, lowest 14.5 percent while the average was 14.509 percent.

Last week, the central bank managed to raise $300 million after issuing a 182-day paper.

Tuesday’s TBs came with an open tender on a yield basis interest rate and special features which included prescribed asset status, liquid asset status, tax exemption as well as acceptability as overnight accommodation by the central bank.

Since resuming public auctions of Treasury Bills in August this year, the Reserve Bank has mobilised more than $500 million in support of various government programmes.

There have, however, been calls for the Ministry of Finance to be transparent by outlining the activities that would have been funded through the funds raised using Treasury Bills.

Issuance of TBs became a contentious issue during the previous government as it raked a huge debt using the instrument.
New Ziana