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HomenewsAuction system to stay- Dr Mangudya

Auction system to stay- Dr Mangudya

The Chronicle

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Business Writer

THE Reserve Bank of Zimbabwe has indicated that the foreign currency auction system shall continue in operation and will be further liberalised as it remains a critical source of foreign currency for the economy, Governor Dr John Mangudya said, in the latest 2023 Mid-term Monetary Policy statement.

Since its inception in June 2020, the central bank has allocated US$4,09 billion to the foreign currency auction system representing 85 percent of the total bids submitted.

A total of US$382, 3 million was allocated to the system in the first seven months of the year.

“The foreign currency auction system remains a critical source of foreign currency for the economy. As such, the Bank shall continue with the current auction system in place and further liberalise the use of foreign exchange from the wholesale auction system by allowing banks to meet bonafide small foreign payment requirements for their customers, including individuals and Micro, Small and Medium Enterprises (MSMEs) in order to enhance financial inclusion,” said Dr Mangudya.

He added, “During the first seven months of 2023, the Bank allotted a total of US$382,93 million through the Retail Auction System, representing 69,45 percent of total bids submitted.

“Since inception of the Auction System in June 2020, a total of US$4,09 billion has been allotted, representing 85 percent of the total bids submitted,” noted Dr Mangudya.

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