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Reserve Bank Of Zimbabwe Governor Dr John Panonetsa Mangudya has said the central bank was working “flat out” to eliminate the foreign currency auction backlog which also is a moving target to achieve stability in the forex exchange market.
Speaking to TechnoMag, Dr Mangudya said,
“We need to bring stability in the exchange market and the money (US$100 million) we have released will substantially expunge a big chunk of the blacklog,” adding that the central bank would thrive to achieve the convergence of the two exchange rates to boost confidence.
Many businesses, seeking foreign currency are either using black market rates to entice customers to spend forex or offer huge discounts for U.S dollar purchases. Enter most leading supermarket chains including OK Zimbabwe, Pick n Pay and Food World and it is common knowledge they are using rates ranging between 220 and 280.
In light of this, the RBZ Governor hence released US$100 million to clear a backlog of foreign currency allocations from previous auctions, as he revealed to TechnoMag after it emerged local supermarket chains are demanding up to $280 for US$1.
The Apex Bank introduced weekly forex auctions in 2020 to enhance foreign currency access by businesses and individuals, but it usually takes long for successful bidders to receive their allocations, causing exchange rate volatility.
This is also forcing many businesses, including some supermarket chains to openly peg prices using black markets exchange rates to entice customers to use hard currency
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