RBZ Auction Disqualifies 547 “Dubious” Bids

Reserve Bank of Zimbabwe (RBZ) foreign exchange auction Tuesday disqualified a total 547 suspicious bids as the authorities sniff out chancers who intend to acquire foreign currency for speculative purposes.

A trading update released at the close of business shows on the Main Auction platform 236 bids were disqualified while 311 bids were also disqualified on the SMEs platform.

As a result, out of the 1 527 bids submitted slightly above one third were disqualified.

Economist Persistence Gwanyanya said the development indicates the central bank’s determination to clip saboteurs’ wings on the market.

“This tells us of the rigorous exercise to weed out bidders who are not genuine. Currently, all companies approaching the auction are now required to submit physical copies of their operations and past transactions to justify the need for foreign currency. All such measures are going a long way to strengthen the market,” he said.

Meanwhile, on the Main Auction , raw materials were allotted US$12,8 million, machinery and equipment US$9,5 million, consumables US$3 million, services US$1,9 million, retail and distribution US$2,5 million among others.

The total value of bids allotted were US$32,6 million with the highest rate received being $120 and the lowest bid rate at $100.

On the Small to Medium Enterprises auction , raw material needs were allotted US$2 million, machinery and equipment US$2,1 million, consumables US$813 235, Services US$549 730.

A total US$39,1 million was allotted on both auctions comprising the Main Auction and SMEs. NewZimbabwe.com

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