By Derick Tsimba
The RBZ has introduced a second foreign exchange auction system to cater for the foreign currency needs of Small and Medium Enterprises (SMEs), the Harare Post can report.
Yesterday in a press statement RBZ Governor, John P. Mangudya said, “The Reserve Bank of Zimbabwe is pleased to advise the public of the introduction of a second foreign exchange auction system to cater for the foreign currency needs of Small and Medium Enterprises (SMEs).”
Mangudya also said the Bank was appreciating Government for contributing foreign exchange towards the success of the auction system.
The Governor also expressed the Bank’s appreciation toward Government’s contribution of foreign exchange for the success of the auction system
“The Bank would like to express its appreciation to Government for contributing foreign exchange towards the success of the foreign exchange auction system in Zimbabwe,” he said.
He also said the SMEs Foreign Currency System was going to enable SMEs to access foreign currency to import raw materials for their businesses.
“The introduction of the SMEs Foreign Exchange Auction System is primarily meant to enable this sector to access foreign currency for the import of essential services and raw materials for their businesses.
“It had become clear that the SMEs sector had been crowded out of the foreign exchange space by the big players. The Foreign Exchange Auction System shall continuously be fine-tuned in order to ensure that it best serves the interests of the economy,” he said.
The Harare Post has learnt that, the second auction system shall be implemented on some of the following terms and conditions, SME bidders shall submit their bids as individuals or firms through an Authorised Dealer. Only bids for a minimum amount of US$2,500 and a maximum of US$20,000 from each bidder per auction shall be accepted.
Bidders shall submit only one bid per Foreign Exchange Auction and submission of more than one bid shall result in rejection of all bids submitted by the concerned bidder. The Foreign Exchange Auction will be conducted every Thursday.