Zimbabwe: RBZ Auction Allotments Overtakes Interbank Market By 27 Percent

RBZ Governor John Mangudya zimbabwe

Reserve Bank of Zimbabwe (RBZ) auction system’s foreign currency allotments have surpassed Interbank market payments by 27%, a development which proves that the auction platform has become a dependable source of foreign currency for companies.

An update released by the central bank Sunday shows that between June 2020 and August 2021, a total US$1,967 billion was allotted to companies through the Foreign Exchange Auction system. In a comparative period, only US$246,4 million was paid out through the interbank market.

In terms of foreign currency payments proportions over the period, the Interbank market stood at 6 % while the Foreign Currency Auction system stood at 33 % , leading the former by 27 %.

In a statement accompanying the central bank’s performance, RBZ governor John Mangudya said the auction system had so far played a diverse role in meeting citizens’ needs.

“A list of the 1 728 beneficiaries of US$1,7 billion was allotted under the Main Foreign Exchange Auction and 3 588 beneficiaries of US$233 million was allotted under the SMEs platform. The auction system has so far covered and benefitted almost every face of the economy, from inter-alia, individuals’ needs for educational fees and vast capital requirements,” Mangudya said.

During the period under review, the bulk of allotted funds constituting 60% has gone towards payment for raw materials and machinery and equipment with the remaining 40% going towards payment for consumables.

Top five beneficiaries of the auction platform includes; Blue Ribbon Foods Limited which has to date received US$25,2 million constituting 1,5 % of the total share, Varun Beverages allotted US$23,2 million equivalent to 1,3% of the total share, United Refineries allotted US$20,7 million, Cangrow Trading US$20 million and Surface Wilmar US$17,2 million.

On the SMEs platform, top beneficiaries are Amalgamated Chemical Industries which has to date received US$875 000, Liteflush Investments US$737 242, Spare Parts Exchange Private Limited US$723 940, Boardex Zimbabwe US$ 707 702 and EID Enterprises Private Limited US$671 278.


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