RBZ Forex Auction Allots Over US$1 Billion To 3 000 Companies

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By Alois Vinga

THE Reserve Bank of Zimbabwe Foreign Exchange (RBZ) Auction has to date allotted over US$1 billion to more than 3 000 large and Small to Medium Enterprises companies becoming the largest foreign currency source.

In a Wednesday update, RBZ governor, John Mangudya said the announcement was in line with the bank’s commitment to keep members of the public informed on developments on the Foreign Exchange Auction.

“In terms of the foregoing, the 1 334 beneficiaries of the Main Foreign Exchange Auction over the period June 2020 to April 2021 are listed hereunder for public information. A list of the 1 744 beneficiaries of the SMEs Foreign Exchange Auction during the same period is also attached,” he said.

The update shows that a total of 1 334 companies have managed to access almost US$1.1 billion during the stipulated period on the main auction platform.

Major beneficiaries include Blue Ribbon Foods which has received a total US$17.2 million, Varun Beverages receiving US$15.2 million, Cangrow US$13.8 million and United Refineries US$12.7 million.

Other top beneficiaries include Olivine Industries, Dairibord Zimbabwe Private Limited, Windmill Private Limited and TelOne, among others.

Top mining, clothing manufacturing and energy companies are also on the list.

The SME sector has also received a total US$80.7 million and top allotments have been extended to companies like the Amalgamated Chemical Industries (Pvt) Ltd, Liteflush Investments, National Spiceworks among others.

The highest amount allotted to the sector’s company so far is US$548 213 and a low of US$ 1 299.

The RBZ auction was conceived in June 2020 and since then, the platform has been hailed by influential companies for bringing about sustained exchange rate stability which has prompted a significant decline of both annual and monthly inflation rates.

As of April 2021, annual inflation had reduced to 194 % down from a high of 837 % recorded at the peak reached last year.

Month on month inflation for the same month stood at 1.58 % in the process creating solid ground for companies to implement predictable long-term plans amid real volume growth.