Forex auction system has failed: Mashakada

THE forex auction system introduced by the Reserve Bank of Zimbabwe in June this year to contain the black market and stabilise the economy has been a major failure and will not achieve targeted results, a former Cabinet minister has said.

The forex auction, which replaced the interbank market exchange rate system, has been taking place every Tuesday with companies bidding for foreign currency and at the end of the day setting weekly official rates.

However, Tapiwa Mashakada, who served as Economic Planning and Investment Promotion minister in the shortlived government of national unity, told NewsDay yesterday that the scheme would remain ineffective to deal with black market rates that have been pushing prices of basic commodities to unaffordable levels for the majority poor citizens.

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