Zimbabwe: RBZ Auction Allots U.S.$32.9m to Boost Industrial Production

Reserve Bank of Zimbabwe (RBZ) foreign exchange auction Tuesday allotted US$32.9 million with a bias towards boosting economic industrial productivity.

A trading update released at the close of FX41/2021 shows that the main auction disqualified 49 bids and accepted 267 with the highest rate reaching a high of $87 and a low of $82 against US$1.

Priority towards raw materials was sustained with allotments reaching US$13.6 million.

Machinery and equipment received US$5.5 million, consumables - US$1.4 million, services - US$2.4 million, retail and distribution - US$2.3 million, fuel, electricity and gas - US$1.7 million, pharmaceuticals and chemicals - US$1.9 million, paper and packaging - US$119 962.

On the small to medium enterprises auction, the total number of bids accepted were 257 which were allotted a total of US$3.7 million.

Highest bid rate $87 and the lowest bid accepted $82.

Priority allotments went to raw materials which received US$1 million, machinery and equipment - US$709 343, consumables - US$962 000, services - US$223 047, retail and distribution - US$366 024, fuel, electricity and gas - US$176 263, pharmaceuticals - US$163 698, paper and packaging - US$119 962.

The auction system is one of the drivers that has stabilised the yearly inflation rate as measured by the all items Consumer Price Index to 240.55%.

Month-on-month inflation rate as at March 31 2021 was 2.26% shedding 1.19% points on the February 2021 rate of 3.45 %.

To date, over 800 companies have managed to access almost US$1 billion from the auction system which is now the largest source of foreign currency in the country.

This article originally appeared on New Zimbabwe

Photo: Equity Axis