ZIMBABWE Cross Border Traders Association (ZCBTA) urges the government to de-marginalise Small and Medium Entreprises (SMEs) in the foreign exchange auction system.
This comes after the government on the 4th of August 2020 introduced the second foreign exchange auction system to cater for the foreign currency needs of Small and Medium Enterprises (SMEs).
The auction system is designed to improve transparency, competency in trading of foreign currency in the country.
Speaking to ZCBTA secretary general Augustine Tawanda told Business Mail that there is need for the Reserve Bank of Zimbabwe (RBZ) to reduce the requirement for SMES so that they can allow them to participate in the auctions.
“The intervention is good for the country, however there is need for the RBZ to lower the threshold so that the small players can get in the game,” Tawanda said.
“The auction has to be accessible to the general entrepreneurs because SMEs and the informal sector are the big players of this economy,” Tawanda said.
“In that regard reducing the amount required will guarantee maximum participation and at the end RBZ will be dealing with issues of financial inclusion and gender empowerment therefore there is definitely need for reform in that area,” He added.
SMEs are allowed bids for a minimum amount of US$2 500 and a maximum of US$20 000.
As at 20 October 2020, the number of bids for SMEs went down therefore the fluctuation in their numbers is a cause of concern.
The IMF’s mandate is to safeguard the stability of the international monetary and financia…