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"RBZ Foreign Currency Auction System Is Problematic" - CZI

The Confederation of Zimbabwe Industries (CZI) yesterday told Parliament that the country’s foreign currency auction system was problematic, resulting in a huge backlog.

These remarks were said by CZI president, Kurai Matsheza while giving oral evidence before the Parliamentary Portfolio Committee on Budget and Finance on the new monetary policy measures on Monday. Mtsheza said:

When it experienced challenges we continued to engage authorities in terms of what we felt were things that were not being done properly, saying that they should be strengthened.

From time-to-time backlogs were building up, but from our membership we never got to a point where we had 100% clearance of those backlogs. As we speak we have got backlogs. A lot of other people also participate on that platform, but on our side we can confirm that the backlogs still exist and bids from as far as January have not been settled, which is worrisome.

In terms of price discovery, we also felt that it was not a true pricing mechanism. We felt the principles of a Dutch auction system were not followed, and as a result we realised that we get prorated.

Matsheza added that initially, they were told that the auction system would settle payments within two days. 

The forex backlog is regarded as one of the major factors driving the exchange rate up as businesses are forced to buy foreign currency on the black market.

More: Pindula News; NewsDay (BY HARRIET CHIKANDIWA)

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Rundofa 1 month ago

Their **** polociz are now haunting them...

...Vote CCC...

Chawabvunza 1 month ago

The problem this Old People's Home government has is its failure too to listen to citizens. CDE Kembo Mohadi hit the nail on the head when he said that opposition political politics started in 1999 when ZANU PF failed to take heed of workers demands. The same thing is happening now. Everybody is saying their auction is a none starter, but they can not listen. Today they are witch hunting economic subotuers among banks. They subotaged themselves.


Gafa 1 month ago

Kkkkk Zanu irikuedza kubarisa ngavi

Nyongolo 1 month ago

too many promises,too many lies

Asalif 1 month ago

nothing ever comes out good for Zanu pf government from A up to Z of their policies everything leaves the country in a lot of problems

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