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RBZ Forex Beneficiaries Bemoan Delays In Disbursement Of Allocated Funds

RBZ Forex Beneficiaries Bemoan Delays In Disbursement Of Allocated Funds

Beneficiaries of the Reserve Bank of Zimbabwe (RBZ)’s foreign currency exchange auction have bemoaned the delays by the central bank in disbursing allocated funds.

This comes barely weeks after RBZ governor, Dr John Panonetsa Mangudya announced that the forex backlog of about US$200 million had been cleared. 

Confederation of Zimbabwe Industries (CZI) president, Kurai Matsheza Wednesday lamented over the protruding backlog which he said had exacerbated an already dire industrial machinery crisis.

The foreign currency auction system ran into problems about a year into existence last year, amid reports that the central bank was struggling to honour allocated funds.

However, the Reserve Bank of Zimbabwe (RBZ) said in the 2022 Monetary Policy Statement it would ensure settlement of auction bid allotments within a period of two weeks.

Speaking to NewsDay Zimbabwe, Matsheza said:

Our members are currently sitting on some huge backlogs in terms of monies allocated at the auction. 

Businesses have got to survive and can’t wait for long to really bring in whatever, be it equipment or raw materials. Obviously the reserve bank has got to allocate what is available so that these backlogs do not grow.

Matsheza added that the availability of foreign currency on the auction will have an influence on the market rate.

The Zimbabwe dollar, is traded at about 250 per every United States dollar while the RBZ pegged it at US$1:$134

Matsheza says the status quo will inevitably continue as long as forex supply on the auction remains depressed.

As a result of the auction backlog, companies are turning to the parallel forex market to source foreign currency as seen by the increase in companies raising prices of goods and services in response to the parallel rate.

Matsheza’s remarks echo findings of a recent market review by the Zimbabwe Coalition on Debt and Development (ZIMCODD).

The study observed that the continued decline of the Zimbabwe dollar on the black market entails high inflation “via the exchange rate pass-through effect.”

Zimcodd said this was one of the major drivers of inflation in Zimbabwe since 2019.

The auction was launched to stabilised the economy by curbing the runaway rate. However, Finance minister, Professor Mthuli Ncube recently said they were yet to establish a rate. 

More: NewsDay Zimbabwe 


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11 Comments

Peter marutsi 2 months ago

Hw much american dollar


Chen 2 months ago

Handei tione zvadii zveee ndimi maiti mombe nemadonkey mutengo wakafanana handei tione. . Vaye professor wekuti rate havasati voziva vachaiziva zvawoo.


Jah🇿🇼Tsvarie-07 2 months ago

citizens*


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Jah🇿🇼Tsvarie-07 2 months ago

Now that auction system has failed we need plan B, lets go back to US$ and make life affordable for every Zimbabwean.

Remember the same people losing hope on Rtgs$ are Zimbabweans who are to vote in 2023 and all they need is work for food on the table, this thing of getting paid to buy money is killing the ciMthuli, Mangudya and Mthuli should act now by swallowing their pride...


HOMO ERECTUS 2 months ago

The govt imported 40 Tons of Bond Notes on Sunday 6th March through Harare Airport. Worth trillions in Bond money. What for??‽

King 2 months ago

If dollarisation is not the answer, then whts the answer? ****ity is repeating same process and expect different results.

Machiavelli 2 months ago

@anonymous, dollarisation will help stabilise the economy until and unless we find a way of generating foreign exchange inflows, whether by BOP support, exports, diaspora remittances, tourism, industrialisation etc.

These RTGS, bond notes etc, are not real money my dea, because it has no productive power base. It's worthless tissue paper

anonymous 2 months ago

Dollarisation will do more harm than good!
In as much as we want our economy to be good and make life easy for everyone, dollarisation is not the answer.

RBZ GAVHUNA 2 months ago

TINE UROMBO HWEKUTI MARI TINENGE TISATI TAANAYO VAKOMANA VEMUROAD MA MONEY CHANGERS ANENGE ASATI AUNZA MARI ASI TIRIKUZVIGADZIRISA PRIZ BEAR WITH US


Zimdollar 2 months ago

Saka GAVHUNA munotenga forex mustreet at RTGS 250 then you sell it pa auction at RTGS 134. Who is fooling who or maybe you are trying to rig the exchange rate. Zvino hazvibudi, you cant rig the economy.

RBZ GAVHUNA 2 months ago

TINE UROMBO HWEKUTI MARI TINENGE TISATI TAANAYO VAKOMANA VEMUROAD MA MONEY CHANGERS ANENGE ASATI AUNZA MARI ASI TIRIKUZVIGADZIRISA PRIZ BEAR WITH US



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