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Foreign Currency Demand Increases On The RBZ Auction
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Zimbabwe: RBZ in $2.5 Billion Winter Wheat Support
1 day ago
By Alois Vinga
THE Reserve Bank of Zimbabwe (RBZ) Monetary Policy Committee (MPC) has injected $2.5 billion towards the winter wheat farming season.
Deliberations made by the new MPC favoured maintaining the current stability, capping on lending interest rates and strengthening support towards Small to Medium Enterprises.
“As part of measures aimed at buttressing the current stability, the committee increased the amount of the Medium-term Bank Accommodation facility by an additional $2.5 billion to cater for the winter wheat planting programme,” RBZ governor, John Mangudya said.
The current conservative monetary targeting framework, anchored on 22.5% reserve money quarterly targets by keeping the bank policy rate and the MBA facility rate at 40% and 30% respectively, was maintained.
By Alois Vinga
THE Reserve Bank of Zimbabwe (RBZ) Monetary Policy Committee (MPC) has injected $2.5 billion towards the winter wheat farming season.
Deliberations made by the new MPC favoured maintaining the current stability, capping on lending interest rates and strengthening support towards Small to Medium Enterprises.
“As part of measures aimed at buttressing the current stability, the committee increased the amount of the Medium-term Bank Accommodation facility by an additional $2.5 billion to cater for the winter wheat planting programme,” RBZ governor, John Mangudya said.
The current conservative monetary targeting framework, anchored on 22.5% reserve money quarterly targets by keeping the bank policy rate and the MBA facility rate at 40% and 30% respectively, was maintained.
By Alois Vinga
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.
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