RBZ must keep tight lid on forex auction system

FOR a while the Reserve Bank of Zimbabwe (RBZ) has been “availing” United States dollars to businesses at a capped auction rate.

This means RBZ funds are the cheapest as they are availabled at around $88 versus $190 on the parallel market. Naturally, everyone wants a slice of that cake, so people have been funding their Zimdollar accounts to bid for the cheap money, but alas, RBZ does not have enough foreign currency to meet the auction obligations.

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