RBZ Auction Allotments Increase To US$43m

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By Alois Vinga

THE Reserve Bank of Zimbabwe (RBZ) Foreign Currency allotments Tuesday increased to US$43 million amid sustained productivity inclined priorities.

An update released at the close of trading shows that a grand total of US$42.5 million was allotted to the combined main and small to medium enterprises auctions.

The figure has significantly increased from US$41.6 million allotted last week.

In the last two weeks, the auction’s allotted figures above the US$40 million mark have been the highest for this year.

Analysing the trends in an interview with Business, economist Prosper Chitambara said the figures are positive indicators for economic growth.

“The allotted figures coupled with the increasing demand for foreign currency indicate a peak in economic activities and augur well with current projections predicting a rebound in productivity. The current trends are also in sync with tobacco marketing season,” he said.

“Over and above, the figures are good indicators which point to a sound basis for economic rebound going forward.”

The total number of bids allotted reached 815 with the main auction sustaining 370 and the small to medium enterprises platform submitting 445.

The main auction was allotted a total of US$36.3 million with raw materials being allotted US$14 million, machinery and equipment US$6.6 million, consumables US$3.2 million, services US$3.8 million, retail and distribution US$3.4 million, fuel, electricity, and gas US$1.2 million, pharmaceuticals US$2.7 million, paper and packaging US$1 million.

The SME auction received a total of US$6.1 million with raw materials being allotted US$1.4 million, machinery and equipment US$1.3 million, consumables US$1.2 million services US$400 000, retail and distribution US$71 000, fuel, electricity, and gas US$237 187 and pharmaceuticals receiving US$432 355.

The official exchange rate remained stable at $84.65 against US$1.