‘Foreign currency auction to drive FDI’

THE foreign currency auction system introduced by the Reserve Bank of Zimbabwe (RBZ) last year set the right tone for scaling up foreign direct investment (FDI) inflows into the country, according to Benefit Washaya, chief executive officer (CEO) of the listed banking group, NMB Holdings.

In a note to the firm’s financial statements for the year ended December 31, 2020, the NMB chief said the exchange rate stability experienced since the forex auction system was introduced should be sustained to boost foreign investor confidence.

FDI inflows had slowed down since Zimbabwe entered a difficult economic phase from 2000, which saw the country receiving only a fraction of the US$5 billion per annum received by its regional peers.

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