Wholesale forex auction overwhelms banks
ONLY US$10 million was purchased by banks today from the US$30 million on offer for the wholesale foreign exchange auction, the Reserve Bank of Zimbabwe has said.
In the first wholesale foreign currency auction early this month, 19 banks were allotted US$11,18 million as authorities switched to the banking system’s interbank market.
As part of the reforms, the RBZ’s Monetary Policy Committee (MPC) met in early June and came up with additional interventions aimed at ensuring that the interbank forex market became the primary source for foreign exchange needs in the economy.
The latest development overtakes the auctions that have carried the burden for just under three years since the middle of 2020.
In an update today (Tuesday) RBZ said, “At today’s wholesale foreign exchange auction for banks, out of US$30 million on offer, only US$10 million was purchased by banks for onward sale to banks’ clients.”
On 16 June, US$6,9 million was allocated from US$10,6 million accepted bids. In taking measures to address issues affecting the economy, the MPC noted that the prevailing volatility in the exchange rate emanated from both supply-side and demand-side factors.-chronicle.cl.zw
