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Businesses get US$41,8mln at forex auction - Chronicle

The Chronicle

Sikhulekelani Moyo, Business Reporter

A TOTAL of US$41,8 million was allotted to bidders on Tuesday at the Reserve Bank of Zimbabwe (RBZ) weekly foreign currency auction platform, slightly higher than last week’s US$40,8 million with raw materials dominating demand.

According to the RBZ latest regular update, a total of 1045 bids were allotted at the main and Small to Medium Enterprises (SMEs) auction platforms.The bulk of the forex that companies sourced continued to be driven by critical raw materials, which firms require to meet their production processes.

This week a total of US$17,6 million was allotted towards raw materials against US$14 million last week reflecting a 25,7-percentage increase.A total of US$ 11,8 million was allotted for machinery and equipment while consumables and other electrical accessories got US$ 3,6 million while US$ 3,1 million went towards retail and distribution services.

The auction platform was introduced last year in June to improve the productive sectors’ accessibility to foreign currency for the procurement of critical raw materials.

Meanwhile, the Zimbabwe dollar continues to maintain stability on the official weekly foreign currency exchange auction system against the greenback exhibiting market confidence in the local currency.

This Tuesday the local dollar traded at $108.7 against the United States dollar, which is the same as last week. [email protected]