Auction system to be refined : Govt

By ZBC Reporter

Government has reaffirmed its commitment to continue supporting the foreign exchange auction system as a dependable and transparent source of foreign currency in the economy.

Outcomes of a meeting between government, Reserve Bank of Zimbabwe (RBZ) and the business community this Monday showed that while there has been a widening gap between parallel market rates and the official rates, there is need to continue supporting the auction system to ensure stability.

The central bank also agreed to review the current bank policy to curb speculative borrowings, tighten money supply, and deal with funding backlog of the foreign exchange allotments.

Bankers pledged to ensure transparency on foreign exchange payments, promote confidence in the sector and improving oversight on bank overdrafts.

Retailers requested government to level the playing field in their operating environment by attending to issues leading to the rise in parallel market rates.

Manufacturers also resolved to ensure responsible pricing models, with the need to maintain stability emerging as key to economic growth.

The RBZ also pledged to continuously monitor monetary and foreign exchange developments to ensure that the exchange rate remains stable.

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