The Reserve Bank of Zimbabwe (RBZ) has allotted US$15.0 million to the Foreign Exchange Auction System for May 23, 2023. In a statement seen by Pindula News, the central bank said this is due to the refinement of the Foreign Exchange Auction System and the Exchange Control Circular to Authorised Dealers (Circular No. 03 of 2023). Reads the statement:
AMOUNT AVAILABLE FOR ALLOTMENT UNDER THE FOREIGN EXCHANGE AUCTION SYSTEM ON 23 MAY 2023
PRESS STATEMENT
In line with the refinement of the Foreign Exchange Auction System and the subsequent Exchange Control Circular to Authorised Dealers (Circular No. 03 of 2023), the Reserve Bank of Zimbabwe (the Bank) would like to advise the public that the amount available for allotment for 23 May 2023 will be US$15.0 million.
Going forward, the Bank will continue to advise the public of the weekly amounts available on offer under the Foreign Exchange Auction System through Authorised Dealers.
The allotment of US$15 million on May 23 is a relatively small amount in the context of the Zimbabwean economy, which has been grappling with foreign currency shortages for several years. The central bank has been allotting about US$20 million every week.
One positive picking from the statement is that the Reserve Bank of Zimbabwe intends to continue to refine the Foreign Exchange Auction System which could lead to more stable exchange rates and improved access to foreign currency for businesses and individuals.
In the long term, this could help to stimulate economic growth and improve the country’s overall economic situation. However, the impact of this allotment on the economy will depend on various factors, such as the demand for foreign currency and the effectiveness of the refinements made to the exchange system.
Last week, the Ministry of Finance and Economic Development lifted a ban on the importation of certain basic commodities. This means there will be increased demand on foreign currency as cross-border traders need forex to import those commodities.