Businesses get US$17,5 million from forex auction, as Zimbabwe-dollar loses ground against the greenback

Michael Makuza, Business Reporter

THE Reserve Bank of Zimbabwe (RBZ) has allotted US$17,5 million to businesses at the Foreign Currency Auction System this week while the local currency continues to lose grip against the United States dollar.

The official exchange rate at the forex auction system moved to US$1: ZWL$892 on Tuesday from US$1: ZWL$881 last week.

In its latest update, the RBZ said a total of US$15,3 million was allotted for the main auction and US$2,1 million for the Small to Medium Enterprises (SMEs), making a total of US$19,6 million.

The main auction approved bids worth US$15,3 million while the SMEs platform got US$2,1 million.

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.

A total of US$7,8 million went towards the procurement of raw materials while US$2,8 million was channelled towards the procurement of machinery and equipment in the main auction.

In the SME category, US$652 589 went towards raw materials while US$525 704 was for machinery and equipment procurement.