US$112million allotted to bidders in May

THE Reserve Bank of Zimbabwe (RBZ) availed US$112 million to bidders through the foreign exchange auction system allotments for the month of May 2022 alone with total allotments clocking US$3,2 billion since inception of the system in June 2020.

According to the latest update from the apex bank, in May, 682 firms from the main foreign exchange auction shared $94 485 929 while $18 491 536 was allotted under the SMEs foreign exchange auction to 1 897 beneficiaries.

Over the weekend, the bank published the list of companies that benefitted in both the main foreign exchange auction and the SMEs foreign exchange auction as part of efforts to promote accountability and transparency.

Central Bank governor, Dr John Mangudya, said during period under review, the bulk of the auction allotments (72 percent) was channelled towards payment for raw materials, which chewed US$51 760 820 and machinery and equipment, which got US$28 908 022.

Central Bank governor, Dr John Mangudya
The remaining 28 percent of the total allotments was for consumables (US$8 735 915), services (US$7 869 358), retail and distribution (US$7 544 394), pharmaceuticals and chemicals (US$4 555 774), packaging (US$3 501 917).

The fuel sector, electricity and gas got US$101 265.

According to the report, Cangrow Trading emerged as the biggest beneficiary after it got an allotment amounting to US$2 117 760, mega market milling (US$1 949 954) and Varun Beverages Zimbabwe accessed US$1 798 638.

Varun Beverages is the second-largest franchise bottler of PepsiCo with a presence in many Asian and African countries.

Arenel Private Limited
Other beneficiaries were Arenel Private Limited, which was allotted US$400 000, Lobels (US$290.000), Radar Investments US$156 633), Enbee Stores US$190 550 and National Foods Limited, which received US$476 266.

The Government introduced the forex trading system in June 2020 as part of measures to stabilise the exchange rate and improve businesses’ access to forex.

The reliance on the parallel market had come with huge distortions, which saw the local currency tumbling against the US dollar within a short period.-The Chronicle