The Reserve Bank of Zimbabwe (RBZ) Governor, Dr John Mangudya has instructed entities seeking foreign currency from the auction system to submit bids to respective bankers for assessment at least four days before the auction to give authorities ample time to carry out due diligence in the wake of increasing number of bids.
Previously, the cut-off time for submission of bids to the Bank was at 0900 hours on the day of the auction which limited time for carrying out due diligence.
“The Bank wishes to advise the public that, with immediate effect, all bids for foreign exchange shall be submitted through bidders’ respective bankers at least four (4) business days before the date of the auction,” reads part of the circular released by the RBZ today.
“The bankers shall in turn submit the bids to the Bank, the auction administrator, at least three (3) business days before the date of the auction.”
The Bank says it has been receiving an average of 2000 submissions per week and the change in bid submission timelines will give banks ample time to assess their customers’ bids.
“Any bid submitted later than the set time frame shall be disqualified,” said RBZ.
Some companies have also been accused of manipulating the system by submitting more bids before earlier allotted bids were paid.
Dr Mangudya this week said they have been receiving and disqualifying a substantial number of bids not eligible in terms of the Priority List.
Bids with overdue CDIs, outstanding Bills of Entry (BOEs), and those with sufficient FCA balances were also disqualified.
The auction system has been struggling to cope with demand for foreign currency on the auction system leading to delays in settling allotted funds.
In some cases, the RBZ has had to settle payments 10 to 15 weeks later.
