• RBZ report on May 2023 foreign exchange auction offers insights for investors.

  • Auction allotments focused on raw materials and machinery, key for Zimbabwean economy.

  • Varun Beverages Zimbabwe among top beneficiaries.

Harare-The Reserve Bank of Zimbabwe (RBZ) has published its report on foreign exchange auction allotments and payments for the month of May 2023, providing important information for investors and businesses operating in Zimbabwe.

The report reveals that during the month of May, the RBZ allotted US$71,409,751 to 614 beneficiaries under the Main Foreign Exchange Auction, while the SMEs Foreign Exchange Auction allotted US$7,870,777 to 761 beneficiaries. This information can inform investment decisions for companies looking to invest in the Zimbabwean market.

The report also shows that the total foreign exchange payments for the month amounted to US$756,215,358, which included foreign currency accounts, foreign exchange auction allotments, and the interbank market. This data highlights the significant role that foreign exchange plays in the Zimbabwean economy, and the importance of transparency and efficiency in its allocation.

The majority of auction allotments were for raw materials and machinery and equipment, with the remaining portion going towards payment for services, consumables, retail and distribution, pharmaceuticals and chemicals, and packaging. This suggests that these sectors are particularly important for the Zimbabwean economy.

Since its inception, the RBZ's Foreign Exchange Auction System has cumulatively allotted US$4,082,018,081. This highlights the importance of the system in promoting transparency and efficiency in the allocation of foreign currency in Zimbabwe, and the role it plays in attracting foreign investment.

Moreover, the RBZ's report indicates that Varun Beverages Zimbabwe, a company producing popular beverages such as Pepsi, Marinda, and 7Up, was among the top beneficiaries of the May 2023 foreign exchange auction. This is in addition to the 5 years tax holiday that the company received since 2018.

In conclusion, the RBZ's report provides valuable insights into the allocation of foreign exchange auction funds in Zimbabwe, offering investors and businesses a clearer view of the most viable sectors for investment, and the importance of transparency in the country's financial system. The report also highlights the significant role played by foreign exchange in the Zimbabwean economy and the potential for foreign investment in the country.

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