RBZ Auction Rejects 424 Suspicious Bids

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By Alois Vinga

LATEST statistics released by the Reserve Bank of Zimbabwe (RBZ) Foreign Exchange Auction shows that a total 424 suspicious bids were rejected as the authority has moved a step up  to improve efficiency.

This came shortly after the central bank met industry captains early this month and agreed on implementing a raft of measures aimed at further harnessing the gains of reduced inflation and relatively stable exchange rates.

In part, the bank also agreed to urgently plug all foreign currency leakages which are choking smooth access for well deserving productive companies.

A trading update released at the close of business shows that a total 424 bids were rejected with 209 and 115 from the SMEs and Main Auction respectively.

Speaking to Business economist Persistence Gwanyanya hailed the central bank for dealing with excess bottlenecks underscoring that such efforts will go a long way to push foreign currency to the needy.

“The rate of bids rejection shows that chancers and some speculators who are in the habit of forging documents to get foreign currency will not be able to perpetuate such sabotage again. So the year has begun on a high note through the eradication of all negative forces weighing down the market.

“Of note is the fact that the bids are not just being rejected, banks which would have approved such faulty bids will be subject to payment of hefty fines and this will deter the negligence which comes with ignoring due diligence,” he said.

The top economist highlighted that if leakages are dealt with, the allotment of figures in the ranges of US$40 million per week is very high and will go a long way to transform the economy.

“Improving the auction’s efficiencies will partly address the parallel market exchange rate challenges since it will be left in the cold to serve only a few,” he added.

Meanwhile, the auction also sustained support to the key economic productive sectors of the economy with the SME platform receiving a total value US$6,1 million with raw materials US$1,2 million, machinery and equipment US$1,9 million, Consumables US$967 713, Services U$1,1 million, Retail and Distribution US$439 023.

On the Main Auction, a total US$32,6 million was allotted with the highest rate received reaching $130 and a low of $107.

Raw materials needs received US$15 million, machinery and equipment US$8,3 million, consumables US$2,8 million, services US$1,7 million, retail and distribution US$2,1 million, pharmaceuticals and chemicals US$1,7 million, Paper and Packaging US$673 224.

A grand total of US$38,7 million was allotted on both platforms.