Foreign currency auction system stabilising the exchange rate

By ZBC Reporter
THE Auction system is getting market confidence with the exchange rate of the Zimbabwe dollar to the United States dollar moving to just over 65 dollars following the third successful foreign exchange auction session held this Tuesday.

Presenting the outcome of the third auction system to bankers, industrialists, and members of the media this Tuesday, Reserve Bank of Zimbabwe Governor, Dr John Mangudya said the latest results indicate market confidence, adding that participation of forex holders in the market will also positively affect price stability.

“We are confident that with the current data we can go further as we seek to stabilise prices in the economy,” said the Governor.

A member of the monetary policy committee, Professor Ashok Chakravarti said the auction results indicate the exchange rate is converging with the parallel market rates on price stability.

“It is all about price stability and we hope in the short to long term we can stabilise rates,” he observed.

Another member of the committee, Mr Eddie Cross says the focus is now on sustaining the auction system.

“It is all about stabilising the rates for the benefit of productive sectors,” said Cross.

Confederation of Zimbabwe Industries Chief Executive Officer, Sekai Kuvarika says industry welcomes the setting of the auction system.

“We really appreciated the auction system for the benefit of the economy and firms,”

The central bank revealed that it has also paid all the bidders within the foreign currency auction system to maintain transparency and accountability.