RBZ TBs issue under-subscribed

The RBZ deployed the FIU to restore sanity to the market, resulting in the arrest and prosecution of illegal money changers, currency saboteurs, and non-compliant businesses—including retailers, pharmacies, and law firms. Offenders faced convictions, warnings, fines, and frozen bank accounts until they complied with regulations.

THE Reserve Bank of Zimbabwe (RBZ) said on Friday its latest issue of Treasury Bills floated last week got less than half of the $150 million it sought to raise to finance Government operations.

It issued the 365-day paper, its fifth TB issue since the central bank resumed the public auctions, on Thursday. Results of the offer show that the RBZ got total bids amounting to $72 million, and only allotted $51 million.

The highest interest rate on offer was 45 percent, lowest 12 percent and average 15,49 percent. This is the second under-subscription of long-term TBs in a row after another for $300 million only secured $81 million last week.

Market watchers said this was an indication investors were less keen on long-term paper compared to short-term TBs. Previous RBZ offers of short-term TBs a few months ago were heavily over-subscribed. — New Ziana