Forex auction trading system benefits productive sector
CLOSE to US$3 billion has been allotted to the productive sector since the beginning of the weekly Foreign Currency Auction Trading System in June 2020.
The Reserve Bank of Zimbabwe (RBZ) introduced the auction platform to improve productive sector accessibility to the much-needed forex.
Companies or businesses in the productive sectors such as mining, agriculture as well as agro-industrial sector need foreign currency to import critical raw materials, consumables, machinery and equipment, among others.
In a statement, RBZ Governor Dr John Mangudya said in the first two months of 2022, a total of US$218,351million was allocated to the productive sector taking the cumulative amount since the introduction of the forex auction platform to US$2,814 billion.
“The total foreign exchange auction allotments by January and February 2022 is US$218,351 million, bringing the cumulative allotments since the inception of the Foreign Exchange Auction System to US$2,814 billion,” he said.
In the first two months of 2022, Dr Mangudya indicated that 823 beneficiaries were allotted US$120,143 million under the main auction last month while 1 897 beneficiaries under the Small to Medium Enterprises auction received US$28,565 million.
“The bulk of the funds allotted at the auction during the month of February 2022 (64 percent) went towards payment for raw materials (US$54,354 million) and machinery and equipment (US$39,429 million) with the remaining 36 percent of the total allotments going towards payment for consumables (US$17,217 million), services (US$11,552 million), retail and distribution (US$15,366 million).
“Pharmaceuticals and chemicals received US$6,743 million while packaging was allotted US$3,840 million, and fuel, electricity and gas (US$204,956),” he said.
Some of the companies from the main auction that have benefited from the facility are Bulawayo-based agro-industrial concern, United Refineries Limited, National Foods, Reinforced Steel Contractors, Mount Meru Millers Zimbabwe, Blue Ribbon Foods, Dairibord Zimbabwe, Schweppes Zimbabwe, Sable Chemicals and Treger Products.
The SMEs auction had beneficiaries such as NCP Distillers, Bituchem, Kotavo Enterprises, KB Davies, Thirty One July, Pema Fashions and Mazola Trading, among others. – The Chronicle
