Companies appreciate RBZ foreign currency auction system

By Business Editor
LOCAL Companies are appreciating the Reserve Bank of Zimbabwe (RBZ) foreign currency auction system for removing distortions in the exchange rate.
A thriving parallel market, price distortions, speculative behaviour, uncertainty, shortages, high inflation and low productivity characterised the economy before the introduction of the foreign currency auction system by the RBZ in June last year.
“Indeed it is for all to see how we are benefitting and its impact on sustaining the entire economy,” said Mike Lashbrook, the National Foods Limited Group Chief Executive Officer.
BAT Zimbabwe Chairperson, Mr Lovemore Manatsa outlined the impact of the auction on production.
“It is all about sustaining productivity and creating that platform to boost our viability base in the country.”
DZL Holdings Group Chief Executive Officer, Mr Anthony Mandiwanza commended the credibility of the exchange rate.
“Before the auction this economy was in full swing of arbitrage activities but look how the auction has stabilised everything with the issue of black market trading being out completely.”
Zimbabwe Fertiliser Company Managing Director, Dr Richard Dafana weighed in emphasising the importance of the auction system in restoring business confidence.
“Confidence is now back at last one can plan for the future without any uncertainty which is good for businesses.”
Financial results being released though modest have however seen companies supporting the exchange rate stability in terms of revenues, sales, growth, cash flows, spending and shareholder returns.