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Tuesday, April 16, 2024
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RBZ promises companies forex access during holiday

Reserve Bank of Zimbabwe (RBZ) has assured the business community that, access to foreign currency from bankers will not be disrupted during the foreign currency exchange auction 27-day recess period.

By Kelvin Kasiwulaya

The 27-day Auction system recess means that the central bank’s weighted average rate will remain static at US$ 1: ZWL $ 671, 466 from the 13th of December to the 9th of January 2023.

Responding to questions from this reporter, the RBZ Financial Markets Department (FMD) assured the business community that they will have access to foreign exchange during the auction system recess.

“Businesses would access foreign exchange from the market at the willing-buyer willing-seller rate from their bankers during the 27 days during the recess of the Auction System. The willing-buyer, willing-seller exchange rate is currently being used in the market for those selling and buying foreign exchange.

Asked if the RBZ would review the auction rate, if need be, before the 9th of January 2023, the FMD said the auction rate will be benchmarked to the Willing–buyer, Willing–seller exchange rate.

The 27-day Forex exchange recess was announced by the central bank on Thursday, and was necessitated by the beckoning festive season.

“As the festive season is upon us, the next foreign exchange auction will be on 9 January 2023, after the one scheduled for 13 December 2022,” reads the announcement.
In its latest update, the central bank said a total of US$15, 482,376.22 was allotted this week,

The bulk of the allotment went to raw materials followed by machinery and equipment, the same as last week.

The total amount allotted for the Small to Medium Enterprises Forex Auction (SMEFX118/2022) is US$1,451,144,38 up from US$ 1,284,863,86 allotted last week.

The total amount allotted on the Main Forex Auction (MAIN FX124/2022) is US$11,720,039.67 up from US$10,266,799,53 last week.

According to RBZ bidding timelines, the foreign exchange rate auction is conducted once every week on Tuesday, where the auction date falls on a public holiday; the auction will be conducted on the next business day which will not be a public holiday.

The Reserve Bank of Zimbabwe (RBZ) launched the Dutch auction system in June 2020 to improve transparency and efficiency in the trading of foreign currency in the economy.#The Sun

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