ZMX Warehouse Receipt System gets RBZ liquid asset status (ZMX) Zimbabwe Mercantile Exchange

Business Writer

THE Zimbabwe Mercantile Exchange (ZMX), which facilitates the buying and selling of a wide range of agricultural products, says the Warehouse Receipt Instruments issued under the ZMX Warehouse Receipt System have been conferred with Liquid Asset Status by the Reserve Bank of Zimbabwe (RBZ).

A liquid asset is an asset that can be easily converted into cash in a short amount of time. Liquid assets include things like cash, money market instruments, and marketable securities.

“Zimbabwe Mercantile Exchange (Pvt) Limited (ZMX) is pleased to advise stakeholders that Warehouse Receipt Instruments (issued under the ZMX Warehouse Receipt System) have been conferred with Liquid Asset Status by the Reserve Bank of Zimbabwe (RBZ),” said ZMX in a statement.

Reserve Bank of Zimbabwe (RBZ)

“This means that as a tradable and negotiable instrument, the Warehouse Receipt Instrument is now considered an asset that can be easily converted into cash.”

A Warehouse Receipt is a legal document that provides proof of ownership of a commodity stored in a certified and approved warehouse, providing evidence of quantity, grade, and quality of the stored commodity. It is recognised as a security in accordance with the Securities Act.

“Warehouse Receipts are used worldwide for commodity trading and financing as well as collateral for loans,” ZMX noted.

With the ZMX Warehouse Receipt System now fully operational, farmers, contractors, and buyers of agricultural commodities are encouraged to make use of this innovation to access safe and secure commodities storage as well as alternative cost-effective financing from participating institutions.

ZMX is a marketplace that facilitates the buying and selling of a wide range of agricultural products, such as maize, wheat, sorghum, and soybeans.

The ZMX was designed to curb warehousing and price discovery challenges relating to farmed commodities, which local farmers encounter in their operations.

The initiative also seeks to deal with challenges encountered by farmers in the marketing of their agricultural produce, which includes limited and often costly logistics, inappropriate or inadequate storage facilities.

Cowpeas

The problems resulted in farmers incurring significant post-harvest losses.

ZMX’s system is suitable for trading in a number of farmed commodities including strategic grains, barley, coffee, groundnuts, macadamia nuts, millet, oats, pecan nuts, rapoko, rice, sorghum, sugar beans, tea, cow peas and round nuts.

The platform gives farmers access to a transparent and efficient marketplace where they sell their produce at fair prices.

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