Over $US1 Billion Disbursed Through Forex Auction System

Business Main Story Zimbabwe

Owen Kaura
 
The Reserve Bank of Zimbabwe (RBZ) says local companies have benefited more than $US1 billion on the Foreign Currency Auction System since its re-introduction in June 2020.

On Wednesday the Central Bank published a list of 1 344 beneficiaries of the main foreign exchange auction system and 1 744 beneficiaries of the SMEs auction over the period June 2020 to April 2021.

According to the list published on Wednesday, US$1 095 577 970 was allotted via the main auction whilst smaller entities received US$80 712 429 during the same period.
 
The top five beneficiaries of the main auction were Blue Ribbon Foods which received US$17 212 404, Varun Beverages US$15 289 476, Cangrow US$13 897 769, United Refineries US$12 751 608 and Surface Wilmar US$11 896 492.

Business analyst Kumbirayi Nhongo said: “This is a very important step to build transparency and accountability on the auction and build confidence on the auction system.

“Beyond this we should continue to have regular updates because it should be standard practice. The RBZ should further disaggregate the information to say what exactly these beneficiaries are importing,” he added.

“We can create import substitute opportunities if we know exactly what we are using the foreign currency for.”
 
Recently, RBZ Governor Dr John Mangudya said, the auction system is not going anywhere, adding that the platform will be sustained as the preferred mechanism of formally allocating foreign currency to the market.