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RBZ Has Cleared Foreign Currency Auction Backlog

The Reserve Bank of Zimbabwe has cleared the foreign currency auction backlog with all allotments made by the end of May now fully funded and all successful bidders since then getting their money on time.

The Chief executive officer of the Bankers Association of Zimbabwe Mr Fanwell Mutogo told the Parliamentary Portfolio Committee on Budget, Finance and Economic Development.

Last month, President Emmerson Mnangagwa issued a cocktail of measures to stabilise the economy. Among the measures was a directive to the central bank to clear the backlog and only auction available foreign currency each week to avoid creating another backlog. 

The Herald, a state-run publication cites Mutogo as saying:

Ever since the adjustment (announced by the President) there has been no backlog since May 31; there has been no incremental rise in backlog.

At its peak, the backlog was approximately US$200 million. The shortage of foreign currency at the auction is said to be driving companies to the black market where they get forex at higher rates. This has been forcing businesses to raise the prices of their commodities in a bid to recoup incurred expenses.

Mutogo also commended the RBZ’s Financial Intelligence Unit for monitoring transactions in the banking sector and dealing with those that were abusing the foreign currency auction system for personal enrichment.

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