Delta: Stability, with distortions
Delta, the country’s biggest beverage producer, says the auction has brought stability, but pricing remains distorted: “The relaxation of regulations allowing use of foreign currency for domestic transactions and the introduction of the foreign currency auction system has to date, stabilised both the exchange rate and inflation. This stability, if sustained, would be welcome for the post-COVID 19 recovery of the economy. There are still distortions in value chain costs as the Zimbabwean economy settles on the dual or multi-currency trading system.”
Econet: Successful in some bids
The country’s biggest telecoms firm, which needs forex to keep its network going, says it has managed to raise some of its forex needs at auction: “The Company welcomes introduction of the Foreign Currency Auction System by the Reserve Bank of Zimbabwe and has been successful in some of its bids on the auction system.”
Afdis: auction lifting the spirits
Afdis, which makes spirits, wines and other liquor, says: “The ability of customers to settle in foreign currency and the foreign currency auction system have brought the well needed relief to the industry and the economy at large. The company was able to meet all its demand and satisfy the market requirements owing to the improved foreign currency supply.
Truworths: Product availability
The clothing retailer says: “Product availability was constrained during the reporting period due to foreign currency unavailability and pricing constraints. This has since improved with the introduction of the Foreign Exchange Auction by the Central Bank. But the company is worried about continued Zimdollar liquidity shortages.
Edgars: Carousel’s gain
The auction has helped clothing retailer Edgars’ manufacturing arm: “Carousel has benefitted from the introduction of the foreign currency auction through access to foreign currency for importation of fabric and machinery for retooling.”
Dairibord: Milking it
The country’s biggest dairy says: “The introduction of the foreign currency auction system and Statutory Instrument 185 of 2020 improved foreign currency availability and stability resulting in enhanced planning, efficiency and value preservation.”
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