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Nqobile Bhebhe, Senior Business Reporter

THE Reserve Bank of Zimbabwe (RBZ) has disbursed a total of US$90 million to 1 506 firms in August under the foreign exchange auction system.

Since the inception of the auction system in June 2020, US$3 521 882 028 has been allocated.

The central bank introduced the auction platform to improve productive sector accessibility to the much-needed forex.

Companies or businesses in the productive sectors such as mining, agriculture, as well as agro-industrial sector need foreign currency to import critical raw materials, consumables, machinery and equipment, among others.

Central Bank Governor, Dr John Mangudya, who issued monthly allocations update on Thursday, said 352 beneficiaries were allotted US$74 818 220 under the Reserve Bank of Zimbabwe (RBZ)’s Main Foreign Exchange Auction for August alone.

On the other hand, 1 154 benefitted under the Small to Medium Enterprises (SMEs) Foreign Exchange segment where they shared US$15 996 378. The forex auction is conducted on Tuesdays and businesses, both small and large.

While the number of beneficiaries fluctuate slightly between months, the formal allotments have helped push the re-industrialisation momentum in line with the Government’s development drive, said President Mnangagwa.

Dr Mangudya said between January and August payments worth US$5 306 865 010 were made with foreign currency accounts receiving US$4 267 521 501, foreign exchange auction allotments (US$925 501 215) and US$113 842 293 to the interbank market.

He added that the bulk of the auction allotments in August, 71 percent was for payment for raw materials (US$42 118 094) and machinery and equipment (US$22 343 942), with the remaining 29 percent of the total allotments going towards payment for services (US$9 345 489), consumables (US$7 913 708), retail and distribution (US$5 050 610), pharmaceuticals and chemicals (US$2 557 581), packaging (US$1 459 452) and fuel, electricity and gas US$25 740.