Mnangagwa Hints At Scrapping RBZ's Forex Auction System

President Emmerson Mnangagwa has hinted the Reserve Bank of Zimbabwe (RBZ) – controlled foreign exchange auction floor system could be done away with, saying it has served its purpose.

Mnangagwa told Brick by Brick magazine that the forex auction system was adopted to deal with a particular challenge that he said has almost been resolved. He said, as quoted by Business Times:

As we go forward, we should reach a stage where we may not need it (Dutch forex auction system) because it’s not necessary.

It has been put there to deal with a particular challenge and I think that challenge is going away. We may reach a stage very soon where we may not need it.

This comes after industry put pressure on the central bank governor, John Mangudya, to consider scrapping the “inefficient” foreign currency auction system or overhauling it.

Companies have been struggling to access foreign currency allotted to them through the foreign currency auction system, and going for several months before getting the allotted funds.

More: Pindula News