The Reserve Bank of Zimbabwe (RBZ) Governor Dr John Panonetsa Mangudya yesterday began the process to clear nearly US$200 million of the foreign currency backlog on the auction market after receiving the requisite funds from Treasury.
Dr. Mangudya made the revelations exclusively to TechnoMag following a statement he released yesterday, as results of the Tuesday forex auctions showed the bank’s commitment to allowing the market to lead the price determination.
“This will go a long way in restoring confidence in the foreign exchange auction system as
well as establishing the foreign exchange market,” said RBZ governor Dr John Mangudya.
“The bank continues to urge foreign auction participants and banks to observe and uphold
principles of good corporate governance and self-discipline to ensure high standards of
business ethics and transparency for the stability of the economy in the short to medium and long-term ,”the apex bank boss Mangudya added.
The backlog in foreign currency settlement on the auction system had resulted in the spiraling of parallel market premium as importers sought quick access to foreign currency on the alternative market.