RBZ Allotments Hit US$39 Million Amid Economic Growth Slant

Spread This News

By Alois Vinga

RESERVE Bank of Zimbabwe (RBZ) Foreign Exchange Auction platform allotments Tuesday reached a record high of US$39 million indicating sustained confidence in the market while sustaining economic growth priority.

An update released at the close of trading showed that a total US$35.6 million was allotted on the main auction with raw material needs receiving US$17.6 million, testifying the commitment towards boosting economic productivity and growth.

Machinery and equipment received US$6.1 million, Consumables US$2.2 million, services US$2.4 million, Fuel US$2.7 million among other allotments.

The Small to Medium Enterprises platform received a total US$2.9 million with raw materials, machinery and equipment receiving the highest allotments.

The two platforms received a total US$38.5 million which is the highest figure to be reached since the inception of the auction in June last year.

The official exchange rate reached $83.75 against US$1, slightly weakening by 38 cents last week’s exchange rate.

The number of companies approaching the auction to source for foreign currency has also been increasing.

The parallel market continues to pay between $90 and $100 for every US$1 but remains incapacitated to pull high volume transactions as compared to the auction system.

Market watchers are optimistic that the current exchange rate stability, increased foreign currency allotments on the auction coupled with expected bumper harvests in sight following a good rainy season will bolster economic growth going forward.