BUSINESS REPORTER
The Reserve Bank of Zimbabwe (RBZ) has introduced special exchange rate-linked corporate open market operations bills as it tightens money supply in the wake of a rise in annual inflation.
Annual inflation, which has been on a decline for the past 13 months, rose to 51.55% last month from 50.24% in August.
These bills will be targeted at corporates with huge local currency balances or those receiving huge payments in local currency, as some of these funds are being used to destabilise the foreign exchange market, RBZ governor John Mangudya said in a statement.
“This measure is to support the stability of the foreign exchange market, in line with the MPC Resolutions of 27 August 2021,” Mangudya said.
The move comes at a time the bank is battling to clear the backlog of foreign exchange auction allotments.
Mangudya said all allotments under the SME auction are up to date and the remaining backlog, “which is also attributable to malpractices by certain entities that were sponsoring multiple bids under the auction system, is substantially in respect of foreign exchange allotments to secondary users of foreign exchange under the Main Auction”
He said all auction allotments will be paid within two weeks from the auction date. This means that the Main Auction allotments for Auction 64 of September 21 will be fully paid by October 4, Mangudya said.
“The Bank has ring-fenced the auction allotments backlog which it will continue to expunge separately from current allotments,” he said.
Companies have been struggling to access the foreign currency allotted at the auction saying it was taking more than two months to get the forex.
Last month, the central bank’s Monetary Policy Committee urged RBZ to clear the US$175m foreign exchange backlog within a month as it moved to improve the auction system.
“The MPC urged the Bank [RBZ] to clear the backlog in a month’s time to enable the Bank to operate the auction system within the set rules of funding auction allotments within two weeks from the date of auction,” Mangudya said in a statement.
