By Alois Vinga
THE Reserve Bank of Zimbabwe (RBZ) has sustained the US$ thresholds allotted through the Auction platform for most part of the year on the back of the ZWL registering a 0, 29% weekly depreciation rate.
Trading updates released by the RBZ Foreign Exchange Auction in the year’s second half which also marked the launch of the Wholesale Auction platform shows that a total amount of US$20 million has been consistently floated on a weekly basis.
A similar trend has been sustained on the Retail Auction platform where amounts ranging around US$2 million are continuously disbursed.
On the back of these trends, previous complaints from Industry bemoaning the past slow disbursements of the allotted payments have since subsided with several companies confirming timely payments.
Meanwhile, this week’s latest RBZ Auction report shows that on the Wholesale Auction platform, a total 19 bids were received with a total US$17, 3 million being disbursed out of US$20 million on offer which the participating banks could not exhaust.
On the Retail Auction Platform, a total US$1,9 million was disbursed with raw materials receiving US$598 523, machinery and equipment US$612 285, Consumables US$123 770, Services US$249 383, Retail and Distribution US$315 518, pharmaceuticals and Chemicals US$27 527, Paper and packaging US$72 709.
The official rate depreciated to US$1: ZWL 5 755 down from the premium of ZWL 5 738 recorded last week signifying 0, 29% depreciation.
Analysing the trends, Economist Doctor Prosper Chitambara said there is a clear demonstration of sustained stability on the exchange rates front.
“There is stability of the exchange rates as testified by the movement of premiums over the last weeks. The amount allotted has remained consistent which is a positive indication signifying the authority’s commitment to stick to their word,” he said.
Chitambara said on the back of these trends, the overall liquidity situation has remained tight prompting a stabilizing impact on the exchange rates markets.
“The premiums in the official rate have however reflected some distortions although this has to some extent been countered by the degree of improved liberalization of exchange rates.
“Overally, the stability demonstrates a positive development which needs to be maintained through continued fiscal prudence with core monetary discipline at the core,” he added.