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RBZ Cleared US$200 Million Auction Forex Backlog - Mangudya

RBZ Cleared US$200 Million Auction Forex Backlog - Mangudya

Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya said that the central bank has cleared the nearly US$200 million ring-fenced foreign currency backlog on the auction system.

The backlog accumulated from bids allotted on the RBZ foreign currency auction but which it could not fund due to forex shortages.

Mangudya said the backlog was also caused by unscrupulous businesses that were sponsoring multiple bids under the auction system.

He said the apex bank was now working to ensure it is up to date on all allotted fresh bids. Said Mangudya:

All the balances, which were there before have been cleared, we are now working to ensure that we are current in terms of the forex auction laws.

However, Confederation of Zimbabwe Industries (CZI) president, Kurai Matsheza, said although the RBZ had cleared the ring-fenced amount, some companies still had backlogs going back to December last year. He said:

When you bid at the auction system, that amount in Zimbabwe dollars is no longer available for working capital, so that is one challenge.

But also in terms of delays to allocations means you will also not be able to get what you had applied the money for, it may be raw materials or capital equipment.

Under normal circumstances, bids made on the auction system must be settled from the third day after approval and must be funded within a fortnight.

This has not been the case and the shortage of foreign currency on the formal market has pushed importers to the parallel market, fuelling exchange rate volatility.

More: The Herald

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Yellow 2 months ago

RBZ foreign Auction system is a fomalised looting platform by the elite class. They are busy looting USA at give away price only to flood the black market where it fetches a handisome profit or simply the venture on fuel business strictly in USA terms such as the Glow Petroleum but initially they would have used rtgs or bond to get the USA. What a deception!!!!!!

Generari SHAPOSHNIKOV 2 months ago

Can yu trade using Zimdollar

factos 2 months ago

you meant by rtgs?

Shoe shine 2 months ago

The clearance is good.
But let's CORRECT our mistakes because.. Zimbabwean dollar is becoming weak.. and we better use usd than our unstable currency... that's why civil servants and civilians are crying in the hot coal.... Bondnotes are becoming more weak and weak since January.....

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