RBZ Auction Allots US$35 Million As Retailers Adopt Official Exchange Rate

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By Alois Vinga

THE Reserve Bank of Zimbabwe (RBZ) Tuesday allotted US$34.8 million amid widespread adoption of the official exchange rate by retail companies receiving foreign currency from the auction platform.

An update released at the close of trading Tuesday showed a total US$29.5 million was allotted on the main auction.

Priority went towards the productivity cause with raw materials US$12.4 million, machinery and equipment US$5.3 million, consumables US$2.8 million, services US$1.6 million, retail and distribution US$2.3 million, pharmaceuticals US$5.4 million, fuel electricity and gas US$1.4 million, pharmaceuticals US$2.6 million, paper and packaging US$695 780.

On the SME auction, a total US$5.3 million with major allotments going towards raw materials US$1.4 million, machinery and equipment US$1.2 million.

Consumables were allotted US$1.2 million, services US$334 590, retail and distribution US$379 823, fuel electricity and gas US$151 893, pharmaceuticals US$315 413, Paper and Packaging US$176 545.

A total 844 bids were submitted on both auctions with several being disqualified for violating the platform’s regulations.

The official exchange rate depreciated by 23 cents to close at $85.04 from $84.76 reached last week.

Meanwhile, a visit by Business to major retail outlets like Pick n’ Pay, Food World supermarkets and OK Zimbabwe revealed compliance with new auction directives compelling auction beneficiaries to abide by the obtaining exchange rate.