By Alois Vinga
RESERVE Bank of Zimbabwe (RBZ) Foreign Exchange Auction allotments this week reached US$42 million, becoming the highest amount to be disbursed on the platform amid sustained exchange rate stability on the platform.
A trading update released at the close of business Tuesday shows that the main auction received US$36.5 million with priority going towards support boosting productivity.
Among the key allotments, raw materials needs received US$16.4 million, machinery and equipment US$6.5 million, Consumables US$3.3 million, Services US$3.1 million, Retail and Distribution US$2.4 million, Fuel Electricity and Gas US$1.4 million, pharmaceuticals US$2 million, paper and packaging US$1 million.
A total of US$36.5 million was allotted on the main auction platform.
On the Small to Medium Enterprises auction, raw materials received US$1.1 million, Machinery and Equipment US$1.3 million, Consumables US$1 million, Services 338 693, Retail and distribution US$454 994, Fuel Electricity and Gas US$157 948, pharmaceuticals and chemicals US$295 11, Paper and packaging US$224 770
The SME platform was allotted US$5 million while the grand total for the two platforms totalled US$41.6 million which is to date the highest amount to be allotted on the auction platform this year.
Demand for foreign currency continues to rise on the platform with 744 bids being submitted after the Main Auction filed 362 bids while the SME auction submitted 382 bids.
The exchange rate remained stable at US$1 being exchanged for $84.61.
This comes at a time when the parallel market rate is hovering at a premium slightly above the official rate which however has had no significant impact as it remains constrained to push higher volumes required by top companies driving the economy.