RBZ Auction remains the largest US$ source for local companies

Business Reporter

THE Reserve Bank of Zimbabwe (RBZ) Foreign Exchange Auction has remained the largest source of foreign currency for local companies since its inception with records showing that the bulk of allotments have supported raw materials and productivity needs.

Since its inception in June 2020, the Auction platform  allotted US$3,7 billion as at December 31 2022, a figure which surpasses existing financial institutions figures.

Apart from this source, the local companies are also sourcing foreign currency through direct sales in line with regulations set by monetary authorities.    

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. 

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