RBZ Urged To Overhaul Forex Auction System

Moses Mashavave, an entrepreneur, has urged the Reserve Bank of Zimbabwe (RBZ) to narrow the gap between the small to medium enterprises auction and the main auction.

Mashavave, who is one of those that have benefitted from the auction floor, said some SMEs that have grown in the recent past but do not qualify to participate in the main auction system, also need to be catered for. He said:

We need the central bank to work to narrow the gap between the SMEs auction and the main auction.

A company that has been receiving support from RBZ for a year has obviously grown but probably is not big enough to qualify for the main auction.

The auction system resumed trading last week following the closure for the festive holidays.

On 10 January 2023, the RBZ allotted a total of US$10,806,183.25, with US$10,019,285.89 going to the main auction, while the SMEs auction was allotted US$786,897.36.

Since its inception in June 2020, US$3,7 billion has been allotted through the auction system to both the main and the SMEs auction. | Chronicle