By Margaret Kamba
Finance Minister Professor Mthuli Ncube anticipates an increased participation in Foreign Currency Auction Trading System following a steady start to the process.
The system introduced by the Reserve Bank of Zimbabwe started operating this Tuesday with an exchange rate of US$1 for ZWL$57,3 replacing the fixed interbank market rate of US$1:ZWL$25.
Speaking along sides the burial of the late national hero Cde Stanley Nleya who was laid to rest at the National Heroes Acre, Professor Ncube everyone must support the system which will increase the value of the local currency.
“I was very happy indeed that the bidding system was very successful on its very first day we received obviously with bids ranging from 25 all the way to a 100, we only allocated 35 to a 100 at US$10, 3 mil and we hope that there will be more participation in the future and this should help stabilize the exchange and at least unify the exchange rate and improve price discovery and give better value to our currency,” Minister Ncube said.
“It’s also good for the tobacco farmers who will now be able to get a more favourable exchange rate for their US$ in terms of retention. It’s also good for the gold producers as well who will also get a favourable rate for their US$ in terms of what they retain out of what Fidelity pays them.
“The saboteurs are always lurking around the corner I am afraid, speculators, people going into money laundering and all manner of shenanigans. So they are always there looking for loopholes but look we will enforce, we will go after them and we will not hesitate to deal with them. We now have an official process to determine the value for currency so let’s all embrace it, let’s all support it and the detractors to stand back and tow the line.”