Zimbabwe foreign currency auction now accounts for only 8% of foreign payments

Foreign currency obtained from the auction, introduced in June 2020 to revive the productive sector, last year accounted for only 8% of the US$9.3 billion that was paid out.

The auction accounted for only US$760 million while US$8.3 billion came from foreign currency accounts. The interbank market paid only US$160 million.

More than US$4 billion has so far been disbursed through the auction with US$2.6 billion being paid out in 2020-21 and US$1.1 billion in 2022.

Foreign currency from the auction accounted for 33% of payments in the period January to June 2021.

Business has been calling for the liberalisation of the foreign currency system, thus abandoning the auction system to let the market determine prices.

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