Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) foreign exchange auction this week allotted a total US$19,1 million to several bidding corporates and SMEs in support of their production needs in a move anticipated to turn around the country’s fortunes.
A trading update released at the close of business this week show that allotments towards bidders remained tilted in favor of supporting industrial productivity.
On the Main Auction platform, 215 bids were received with a value of US$20,2 million out of which raw materials received US$9,2 million, machinery and equipment US$1,9 million, consumables US$967 33, services US$1,3 million, retail and distribution US$2,3 million, pharmaceuticals and chemicals US$457 478, paper and packaging US$615 144.
A similar trend was observed on the SME Auction where 301 bids were received with a total value of US$27 million.
A grand total of US$19,1 million was allotted on both platforms with bidding rates reaching a high of ZW$ 890 and a low of ZW$ 830.
The official exchange rate depreciated to ZW$831,18 down from ZW$801,60 recorded last week.
The results come at a time when the latest Monetary Policy Statement for 2023 revealed that the foreign exchange auction system has remained a key source of foreign currency for the economy, fostering stability in both the foreign exchange and goods markets.
In 2022, a total amount of US$1.1 billion was allotted on the foreign exchange auction, representing 91% of the total bids submitted. Since the introduction of the auction system, cumulative allotments amounted to US$3.7 billion as at 31 December 2022.
The share of the MSMEs sector continued to increase from 17% during the first half of 2022 to 22% in the second half of 2022.
