Chronicle EditorOliver Kazunga, Senior Business Reporter
TOBACCO farmers have expressed excitement over the Foreign Currency Auction Trading System, which has seen them receiving improved payments that are closer to market value.
Three weeks ago Government through the Reserve Bank of Zimbabwe phased out the fixed exchange rate and introduced the auction to determine the exchange rate. The local market at that time was marred by exchange rate distortions triggered by the parallel market.
In an interview, Tobacco Industry and Marketing Board (TIMB) chief executive officer, Dr Andrew Matibiri, acknowledged the positives brought about by the forex auction system but said the move has not immediately changed deliveries.
“We have not seen a sudden increase or decrease but farmers are happy now because they are being paid something close to the market value of their tobacco when they sell,” he said.
Tobacco is one of Zimbabwe’s major foreign currency earners as the country exports its golden leaf around the world to countries such as China, Belgium, United Arab Emirates, South Africa, Egypt and Mozambique.
So far, tobacco worth more than US$270 million has been sold at the auction floors since the beginning of the marketing season which started towards the end of March.
It is hoped that improved sales will boost foreign currency inflows into the country. — @okazunga.
Online Reporter