Weekly forex allotment clocks US$46 million

THE amount of foreign currency allocated to bidders at this week’s auction system reached a record high of US$46,9 million from, which 981 bids were accepted.

The weekly Foreign Currency Auction Trading platform has been gaining confidence from business players since its launch last year in June.

The forex auction system has helped improve formal access to forex by the productive sectors and is credited for stabilising the exchange rate.

According to data released by the Reserve Bank of Zimbabwe (RBZ) after Tuesday’s auction, a total of US$46,9 million was disbursed to the productive sector compared to US$34,8 million last week.

As has always been the tradition, the bulk of the hard currency amounting to US$16,3 million was for raw material procurement by both companies that participated at the Small to Medium Enterprises (SMEs) and the main auction.

Last week, US$13,8 million was allotted for critical raw material procurement by firms that participated at both auctions. The platform also saw foreign currency being disbursed for various purposes such as importation of machinery and equipment, consumables (such as spares, tyres and electricals), fuel, electricity, gas, chemicals and pharmaceuticals.

Following this week’s auction, the Zimbabwe dollar traded at 85,24 against the United States dollar slightly easing from last week’s rate of 85,07.-chronicle.cl.zw