Chronicle Editor
THE new foreign exchange management regime to be introduced by the Reserve Bank of Zimbabwe (RBZ) next week, which is based on an auction system, must have operational rules that inspire market confidence in order to work effectively, key business leaders have said.
The RBZ said the new Foreign Exchange Auction Trading System comes into force on 23 June 2020 and replaces the fixed exchange rate regime adopted in March. Prior to adopting the fixed rate regime, the RBZ had used an interbank market system, which had faced a lot of challenges.
A statement signed by RBZ Governor Dr John Mangudya says the bidding platform shall be the Reuters Foreign Currency Auction Platform that will be linked to a Computerised Export Payments Exchange Control System (Cepecs).
Dr Mangudya said the adoption of the Foreign Currency Auction System will bring transparency and efficiency in the trading of foreign currency in the economy.
Essentially, auctions of foreign currency from Tuesday next week will set the official exchange rate with approved importers bidding on the platform through their banks for the foreign currency
ALL SHARE
The All Share index closed the week on a positive note adding 54.16 points (3,26 percent) to close at 1,713.63 points. BAT added another $14,5000 to $216,0000, Cafca rose by $4,0000 to close at $50,0000 and SeedCo International Limited traded $3,3500 higher at $24,3500. Afdis also increased by $2,5000 to $15,5000 and FBC Holdings was $2,0200 stronger at $12.3500.
Trading in the negative; CBZ Holdings lost $0,8035 to $33,8594, Simbisa eased $0,3397 to close at $8,4397 and Econet was $0,0460 lower at $0,0460 to $8,3993. Medtech also decreased by $0,0104 to $0,1200 and Willdale was $0,0088 weaker at $0,2500.
Online Reporter