Zimbabwe has so far disbursed US$4.08 billion to businesses through the auction system since it started in June 2020, the latest data shows.
The lion’s share went to the main auction at US$3.5 billion, while the SME auction took $574.92 million.
Giving an update on monthly allocations, Reserve Bank of Zimbabwe (RBZ) governor John Mangudya said a total of $79.28 million was allocated through the main and SME auction systems.
“The sum of US$71 409 751 was allotted to 614 beneficiaries under the Main Foreign Exchange Auction during the month of May 2023 and the sum of US$7 870 777 was allotted to 761 beneficiaries under the SMEs Foreign Exchange Auction during the month of May 2023,” he said.
“Total foreign exchange payments for the period 1 to 30 May 2023 were US$756 215 358 broken down as follows: (i) foreign currency accounts (US$662 891 023); (ii) foreign exchange auction allotments (US$79 280 528); and (iii) the interbank market (US$14 043 807).”
Mangudya said the huge chunk of foreign currency was allocated to the purchase of raw materials.
“The bulk of the auction allotments during the month of May 2023 (66,7%) was for payment for raw materials (US$37 837 688) and machinery and equipment (US$15 089 238), with the remaining 33,3% of the total allotments going towards payment for services (US$4 954 705), consumables (US$5 880 375), retail and distribution (US$9 459 110), pharmaceuticals and chemicals (US$2 553 364) and packaging (US$3 418 541).
“Total cumulative foreign exchange auction allotments since inception of the Foreign Exchange Auction System stand at US$4 082 018 081,” he said.
The black-market exchange rate is hovering around US$1 to ZWL8,000, while the official exchange rate is US$1 to ZWL6,351. Businesses can add a 10% margin, bringing the allowable rate to $6,986.
Many traders and retailers are opting for the parallel market exchange rate and increasing prices quietly, leaving consumers worse off.
Meanwhile, it was another positive day for the Zimbabwe Stock Exchange (ZSE) on Thursday, as it closed higher by 1.24% to close at 187,657.43 points.
The Top 10 Index appreciated by 0.45% to 114,538.80 points.
The Medium Cap Index gained the most, up 4.08% to close at 347,044.03 points. The Small Cap Index was flat at 1,127,400.66 points.
Turnover was up 155% to $3.37 billion, while market capitalisation jumped 1.83% to $15.38 trillion. CBZ led on value traded at $1.64 billion, while Nampak had the most volume at 3.32 million shares.
Morgan & Co Multi Sector ETF remained flat at $145.0000. Morgan & Co Made In Zimbabwe ETF remained flat at $6.4000.
Cass Saddle Agriculture ETF added $0.0043 to $4.5537.
Datvest Modified Consumer Staples ETF added $0.0037 to $13.0000 and Old Mutual ZSE Top 10 increased by $6.0893 to $52.0000 – Harare