Chronicle Editor
Sikhulekelani Moyo, Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) has allotted US$30,4 million to bidders at the official foreign currency auction this week to support business operations through smooth acquisition of raw materials and other critical payments.
Despite the speculative impact of the wild parallel market rates, most businesses rely on the official forex system to raise funding for the procurement of essential raw materials, machinery and equipment.
According to the latest update from the RBZ, a total of US$26,1 million was allotted under the main auction while US$4,3 million was channelled to the Small to Medium Enterprises (SMEs).
The main auction received 437 bids and 417 were accepted whilst 1 174 bids were received by the SMEs and 1 122 of these were accepted.
The Apex Bank said the main auction was allotted US$12,4 million towards procurement of raw materials while the SMEs segment got US$1 million under the same.
A total of US$6,4 million was allotted under the main auction towards procurement of machinery and equipment with SMEs getting US$1,5 million.
The forex auction has been commended for continuing to improve the formal access of foreign currency to the productive sector, which helps to stabilise the exchange rates and pricing.
Other foreign currency have been disbursed towards various purposes such as procurement of the consumables (tyres, electrical and spare), services like loan sand education, also retail distribution and pharmaceutical and chemicals.
Following this week’s auction, which was conducted on Wednesday, the Zimbabwean dollar traded at $155,1 against United States dollar from last week’s rate of $150, 2.
Last month about US$151,9 million was allotted to 886 firms in the main foreign exchange auction while 2 371 beneficiaries shared US$32,2 million under the SMEs foreign exchange auction.
More than US$3 billion has been allotted to the productive sector since the commencement of the auction system in June 2020. – @sikhulekelaniM1
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