The Reserve Bank of Zimbabwe (RBZ) foreign exchange auction has become the major source of foreign currency for big companies, allotting US$35.2 million this week.
A trading update released at the close of the FX37/2021 states that a total 292 bids were accepted on the main auction while 229 bids were accepted on the Small to Medium Enterprises.
The surge in the number of bids and the allotments totalling US$35.2 million indicates that the auction platform is so far the largest external source of foreign currency for local companies.
The official rate sustained a premium of $83.98 against US$1 while the parallel market rate stood at $100 but remains incapacitated to push high volume transactions.
On the main auction, the total bids of 292 received totalled US$32 million while the highest rate received was $87 with a low bid rate of $82.
Raw material needs received US$13.9 million, Machinery and Equipment US$5.2 million, Consumables US$2.8 million, Services US$2 million, retail and distribution US$2.4 million, Fuel Electricity and Gas US$2.6 million, pharmaceuticals and chemicals US$2.1 million, paper and packaging US$561,968.
On the Small to Medium Enterprises auction, 229 bids were received totalling of US$3.2 million.
Raw materials were allotted US$933 339, machinery and equipment US$546 537, Consumables US$608 270, Services US$277 336, Retail and Distribution US$294 729, Fuel Electricity and Gas US$278 180, Pharmaceuticals US$201 157, Paper and packaging US$93 651.
A total 118 bids were rejected as they were not eligible in terms of the Priority List.
“Bids with overdue CD1s, outstanding Bills of Entry (BOEs) and those with sufficient FCA balances were also disqualified. Some Bids were allotted on a pro-rata basis to conform with the Import Priority List,” read the update.