RBZ says US$15 mln available on the Auction next week, tightens operational screws
Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) has revealed that US$15 million is available for uptake on the Foreign Exchange Auction next week amid screws tightening of the platform’s operations.
RBZ governor, John Mangudya Tuesday revealed the amount set for the coming week.
“In line with the refinement of the Foreign Exchange Auction System and the subsequent Exchange Control Circular to authorised dealers (Circular No. 03 of 2023 dated 12 May 2023, the RBZ) would like to advise the public that the amount available for allotment for 23 May 2023 will be US$15 million,” he said.
He said going forward; the bank will continue to advise the public of the weekly amounts available on offer under the Foreign Exchange Auction System through Authorised dealers.
It is believed move will go a long way to stabilise the exchange rates since bidders know well in advance where to peg their bids. If the amount available is higher, bids will be set at a lower range and vice-versa if the amounts available are lower.
The initiative is also expected to minimise the accrual of backlogs as the central bank moves to strictly disburse only what is available.
Meanwhile, a n update released at the close of trading on the RBZ Foreign Exchange Auction Tuesday shows that the official exchange rate depreciated to US$1:ZWL 1 404, 80 down from US$1:ZWL 1 202 recorded last week.
A grand total of US$14,4 million was allotted on both the Main and SMEs Auction platforms with raw materials , machinery and equipment needs receiving the highest amounts in line with the objective of stimulating productivity.
