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.