RBZ Forex Auction Allotment to Industry Jumps to U.S.$33 Million

Reserve Bank of Zimbabwe (RBZ) allotments to industry Tuesday rose, further reaching a new high of US$32.9 million coupled with the official exchange rate stability.

The auction first reached the peak in September this year after allotting US$31.6 million to industry.

A fortnight ago, the auction reached the second highest figure of US$31.7 million.

A trading update released at the close of the 23rd auction Tuesday shows that a total US$32.9 million, indicating the third highest figure since the inception of the auction system in June this year.

Raw materials on the main auction were allotted US$13.3 million, machinery and equipment US$6.1 million, consumables US$2.6 million, services US$2.3 million.

The platform saw retail and distribution being allotted US$2.5 million, fuel US$1.8 million, pharmaceuticals US$1 million and paper and packaging receiving US$626 000.

In total, the main auction received US$30.6 million.

On the Small to Medium Enterprises platform, raw materials were allotted US$627 000, machinery and equipment US$488 162, consumables US$437 000, services US$190 000, retail and distribution US$253 443.

Fuel electricity and gas received US$159 613, pharmaceuticals and chemicals US$82 656, paper and packaging US$85 396.

The total allotments on this platform reached US$2.2 million.

The official exchange rate reached $81.81 against US$1 weakening by $0.14 from the premium of $81.67 recorded last week.

The official exchange rate has sustained stability for over two months as the premiums continue to hover around $81.

Market watchers say the continued rise in foreign currency allotments indicates increasing confidence in the foreign exchange auction system.

Several companies have hailed the platform for bringing about stability and predictability in the markets, a positive step which has restored forward planning and forecasting.

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