Chronicle Editor
Michael Makuza, Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) has been allotting an average of US$18 million in the past month to businesses at the Foreign Currency Auction System.
On Tuesday a total of US$18,07 million was allocated to businesses.
The main auction approved bids worth US$15, 9 million while the Small to Medium Enterprises (SMEs) platform got US$2, 1 million.
The forex auction is conducted on Tuesday’s and at some point businesses shared over US$30 million weekly.
In the past four weeks, the highest allocation was US$20, 2 million on 14 February, followed by US$19, 6 million on 22 February.
Since the establishment of the platform in June 2020, the bulk of the foreign currency has been allotted towards the procurement of raw materials, machinery, and equipment.
As of February 2023, the total cumulative Foreign Exchange Auction allotments since the inception of the auction system in June 2020 stood at US$3 768 221 065.
While the number of beneficiaries fluctuates slightly between months, the formal allotments have helped push the re-industrialisation momentum in line with the Government’s development drive.
The Central Bank introduced the auction platform to improve productive sector accessibility to the much-needed forex.
The auction system continues to provide affordable and easily accessible foreign currency to the productive sector in a bid to reduce production costs and promote industrial growth as this reduces sourcing of forex from the illegal forex market, which manipulates exchange rates.
Online Reporter