RBZ Opens Up Forex Auction Floor for Small Value Amounts

Reserve Bank of Zimbabwe (RBZ)’s Monetary Policy Committee (MPC) agreed to allow the trading of small value foreign currency amounts of up to US$50 per person per week from the forex auction trading system to promote financial inclusion.

The bureaux de change charges and commissions for the small notes will go up to 10% per transaction,

Commenting on the latest RBZ development Permanent Secretary in the Ministry of Information, Nick Mangwana said what is needed is one’s identity card to access this facility.

“@ReserveBankZIM has made life easy for people by liberalising the purchase of small value forex amounts of up to US$50 per person per week from bureaux de change at the auction rate,” he said on.

The decision to further liberalize the forex auction floor comes at a time when RBZ was already struggling with a backlog in disbursing foreign currency to entities using the system.

MPC urged RBZ to address a backlog of around US$175 million according to the Central Bank governor John Mangudya.

“The MPC urged the Bank 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.

“The MPC also emphasised the need for banks to avoid the use of overdrafts to fund auction allotments except in exceptional circumstances in support of productive sector activities.”

Zimbabwean citizens are currently opting for foreign currency, with the country’s main RTGS/Bond currency losing value.

Some Zimbabweans who have also been opting for foreign currency say it is cheaper to pay for services using the United States Dollar than the local currency.

Landlords around the country have also been demanding foreign currency from tenants.

The black market has been the biggest source of foreign currency for those that need small value amounts.