Staff reporter

The business and production sector in the country has commended the Reserve Bank of Zimbabwe (RBZ) for clearing the backlog of foreign currency allotments under the Foreign Exchange Auction System.

In a statement yesterday, RBZ Governor, Dr John Mangudya said the foreign exchange auction backlog has been resolved and the clearance was due to improved foreign currency inflows in the country.

“The Reserve Bank of Zimbabwe (the Bank) is pleased to advise the public that it has cleared the backlog of foreign exchange allotments under the Foreign Exchange Auction System. This development is a result of improved foreign exchange inflows in the Country. Going forward, the Bank will abide by the Foreign Exchange Auction Rules and ensure that foreign currency is available to successful bidders within 14 days from the date of auction. This will go a long way in maintaining a stable foreign exchange rate and sustaining financial stability in the economy,” said Dr Mangudya.

Speaking to this publication, economic analyst Patricia Sibanda revelled on how RBZ had made an effort to clear the bulk of the foreign currency backlog and how the auction system has further improved its efficiency.

“Despite the auction system starting off slowly, RBZ has made commendable efforts to clear the bulk of the foreign currency backlog and this move is a positive boost to businesses and the productive sector,” said Sibanda.

Government, through RBZ introduced the auction system in June 2020 as part of measures to stabilise the exchange rates and improve businesses access to foreign currency.