RBZ Auction Sees Rise In Foreign Currency Demand, Allots US$36 Million

Spread This News

By Alois Vinga

THE Reserve Bank of Zimbabwe (RBZ) has seen foreign currency demand increase on the foreign exchange auction amid a significant rise in allotments which reached US$35.7 million this week.

A trading update released at the close of the FX39/2021 auction shows that a total of 644 bids were received on both the Small to Medium Enterprises (SMEs) and Main Auction platform.

A total of 300 and 344 bids were received on the SME and Main auction platforms respectively registering a significant increase from below 500 bids which were received since the auction’s inception last year.

Out of the total bids received, the main auction rejected 68 while the SME platform disqualified 47 bids.

Priority allotments went towards Raw Material support with the main auction receiving US$15.5 million for raw materials, machinery and equipment US$5.5 million, consumables US$2.5 million, services US$2 million, retail and distribution US$1.8 million with pharmaceuticals and electricity receiving US$2.1 million and US$2 million respectively.

A total US$32.1 million was allotted on the main auction platform while US$3. 5 million was allotted on the SME auction.

The segment received US$863 671 for raw materials, US$727 234 for machinery and equipment, US$765 857 for consumables among other priority allotments.

The exchange rate remained stable at $84.40 against US$1.

The auction platform has supported 800 companies with foreign currency since its inception eight months ago, thereby becoming the largest official source of foreign currency.