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Oliver Kazunga, Senior Business Reporter
THE Bankers Association of Zimbabwe (BAZ) says the recently introduced weekly Foreign Exchange Auction Trading System has so far managed to stabilise the exchange rate while promoting price discovery in the market.

The Reserve Bank of Zimbabwe has introduced the Foreign Exchange Auction System which has replaced the fixed exchange rate.

BAZ president Mr Ralph Watungwa said the system had brought about transparency and efficiency in the trading of foreign currency.

“The introduction of the auction system has been one of the key recommendations of BAZ’s regular inputs to the monetary and fiscal authorities. Our view is that the system brings transparency and efficiency in the trading of foreign currency,” he said.

Mr Watungwa said so far US$56,3 million has been alloted under the new system.

He said since the introduction of the auction system, the exchange rate has been moving inline with market conditions unlike in the past.

Mr Watungwa said BAZ continues to call on exporters and sellers to submit forex bids indicating the amount offered and the expected exchange rate through their respective banks.

“We further call on authorities to continue providing this platform for price discovery and all players should use official channels to access forex,” said Mr Watungwa. — @okazunga