THE backlog at the foreign currency auction run by the Reserve Bank of Zimbabwe has now been cleared with all allotments made by the end of last month now fully funded and all successful bidders since then getting their money on time.
Chief executive officer of the Bankers Association of Zimbabwe Mr Fanwell Mutogo told the Parliamentary Portfolio Committee on Budget, Finance and Economic Development that the measures adopted by Government through the announcement made by President Mnangagwa early last month had contributed to increased sanity at the auction.
Among the measures announced by the President were that the backlog would be cleared promptly and then stay cleared by only auctioning available foreign currency each week making any new backlog impossible.
“Ever since the adjustment (announced by the President) there has been no backlog since May 31; there has been no incremental rise in backlog,” he said.
At its peak the backlog was approximately US$200 million.
Mr Mutogo also commended the RBZ’s Financial Intelligence Unit for the splendid work it was doing to monitor transactions in the banking sector and deal with those that were abusing the foreign currency auction system for personal enrichment.
President Mnangagwa said 12 banks had been fined for various acts of indiscipline and the FIU found that 15 companies or groups of companies had abused billions of dollars in bank loans in arbitrage and black market deals.
The speculative behaviour of unscrupulous entities and corporates has seen the local currency losing value rapidly since the beginning of the year spawning a rise in prices of basic commodities and threatening the gains the economy has made in the past two years.