RBZ avails US$4,1 billion to local companies to maintain price stability
THE Reserve Bank of Zimbabwe (RBZ) Foreign Exchange Auction has allotted a total US$4,1 billion since its inception, maintaining the lead in being the largest local source of foreign currency supporting companies.
The Auction system was introduced to create a formal channel for local companies to source foreign currency as opposed to approaching the parallel market, which has been widely regarded as the main source of economic instability due to its distortive nature.
In an update on Monday, RBZ Governor Dr John Mangudya said; “Total cumulative foreign exchange auction allotments since inception of the Foreign Exchange Auction System in June 2020 stand at US$4 120 819 400,” he said.
In December 2023, the sum of US$3 909 195 was allotted to 228 beneficiaries under the Retail Foreign Exchange Auction during the month of December 2023.
A sum of US$12 830 473 was allotted to 263 beneficiaries under the Wholesale Foreign Exchange Auction.
Total foreign exchange payments for December 2023 were US$685 413 107 broken down as follows: foreign currency accounts (US$651 028 674); Foreign Exchange Auction Allotments (US$16 739 668); and the interbank market (US$17 644 765).
“The bulk of the retail auction allotments during the month of December 2023 (58 percent) was for payment for raw materials (US$1 489 281) and machinery and equipment (US$763 311), with the remaining 42 percent of the total allotments going towards payment for services (US$474 514),” said Dr Mangudya.
He added that consumables were US$556 276, retail and distribution US$129 617, pharmaceuticals and chemicals US$399 609, and manufactured goods US$96 587.-chronicle
