RBZ forex trading auction on a traditional annual shutdown

THE Reserve Bank of Zimbabwe (RBZ) foreign currency auction system has closed its operations till mid-January 2021.

RBZ’s foreign currency auction trading system was introduced on 23 June 2020 as a means to replace the fixed foreign exchange rate.

A statement by RBZ Monetary Policy Committee (MPC), resolved that the auction will resume operations on 12 January 2021.

The move to close the auction was made in light of the fact that most local firms are on a traditional annual shutdown owed to the festive season.

As of last week, the foreign exchange system has since stabilized the exchange rate against the United States dollar at 81.73.

RBZ assured the public that the foreign exchange auction system would continue to anchor for the management of foreign currency in Zimbabwe.

“As a result of the foreign exchange auction system and other supportive measures introduced by the government, the economy has witnessed an increase in the production of goods and services.

“Price and financial system stability shall remain the primary focus of the bank,” said RBZ.

The MPC also resolved to maintain the conservative monetary targeting framework in 2021 in order to sustain price stability in the economy.

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