How money from Zimbabwe forex auction from June 2020 to June 2021 was allotted

Nearly 70% of the foreign currency that was allotted through the foreign currency auction system between June last year and June this year went to the productive sector with raw materials getting 41%, machinery and equipment 18 %, and consumables 10%.

Just over US$1.5 billion was allotted to 3 988 companies, 2 443 of them in the small and medium enterprises sector, with US$639.2 million for raw materials, US$281.2 million for machinery and equipment and US$150 million for consumables including spares, tyres and electricals.

The bulk of the money $1.4 billion went to large companies.

Figures released by the central bank yesterday showed that a total of US$4.8 billion was paid out between January and December last year.

The auction, which started on 23 June 2020, only paid out US$627.3 million accounting for 13% of the forex. The bulk, UDS$3.7 billion was from foreign currency accounts while banks paid out US$443.9 million.

The auction has, however, upped its role this year accounting for 33% of the money allotted in the six months to June. It accounted for US$917.7 million of the US$2.8 billion paid out. Banks accounted for US$201 million while FCA accounts paid out US$1.7 billion.

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