RBZ publishes list of 6,000 beneficiaries of currency auctions
By Alois Vinga
RESERVE Bank of Zimbabwe (RBZ) on Friday released a consolidated statement showing that nearly 6,000 companies have benefited from its foreign exchange auction system since the platform’s inception until last year.
The update comes amid concerns expressed by companies accusing the platform of delays in settling allocated foreign currencies.
It also coincides with a backlash from some segments of society questioning the market’s effectiveness in meeting local demand for foreign exchange.
But in an update, RBZ Governor John Mangudya claimed that the platform contributed significantly to the use of foreign currency in the local market, as witnessed by 1,822 beneficiaries over 1 , US $ 8 billion allocated in the framework of the main currency auction.
“The auction system remains the most diverse source of currencies with more than 5,958 entities accessing currencies through the main auction and the SME auction.
“Most of the allocated funds (60%) were spent on the payment of raw materials (US $ 857.6 million) and machinery and equipment (US $ 421.7 million) and the remaining 40% was allocated payment for consumables, pharmaceuticals and other critical economic needs, ”he said.
The statement said 4,136 companies benefited from the US $ 267,395,337 allocated as part of the SME foreign exchange auction.
The attached table presents the total foreign currency payments by source for the period January 2021 to September 2021 amounting to US $ 4.9 billion broken down as follows: – foreign currency accounts US $ 3.1 billion, interbank market 275.6 million US dollars, and the foreign exchange auction system 1.5 billion US dollars.
The calendar shows that the auction remains the second largest source of foreign currency at 30%, aside from self-funded foreign currency accounts which stand at 64%.
At the bottom as a source of foreign exchange is the interbank market, which sits at 6%.
To date, the top ten beneficiaries include; Blue Ribbon which benefited from US $ 27 million, Varun Beverages from US $ 24.5 million, United Refineries from US $ 21.7 million, CanGrow Trading from US $ 20.6 million, Surface Wilmar from 17, US $ 6 million and Willowton Group Zimbabwe US $ 17.1 million.
The other three are; Dairibord Zimbabwe Limited US $ 16.5 million, Olivine Industries US $ 16.4 million, Pure Oil Industries US $ 15.2 million and ZFC Limited US $ 13.1 million.