Zimbabwe: RBZ Has No Appetite for $100 Notes, Allocates U.S.$36m Through Auction

The Reserve Bank of Zimbabwe (RBZ) says it is working on introducing a new $50 note on the market, but dismissed immediately recent media reports it would also bring in higher denominations of $100 and $200 notes.

This was confirmed by the central bank governor John Mangudya in a statement.

“The bank is working on the introduction of the $50 banknote into the into the market for the convenience the public. For the time being, the bank has no plans of introducing $100 and $200 bank notes as suggested in some sections of the media,” he said in a short statement.

Meanwhile, the RBZ foreign exchange auction resumed for the year 2021 with the allocation of a total US$36 million to support companies in key productive sectors.

The latest auction was the first to be held this year following a brief shut down last year for the festive season break. The allotted figures Tuesday surpassed the highest amount of US$33 million allotted in 2020.

The Zimbabwe official exchange rate against US$1 reached $82.09, weakening by 31 cents when compared to the previous exchange rate of $81.78.

A trading update released at the close of the first auction of 2021 shows the main auction platform accepted 273 bids.

Bidding rates reached a high of $86 and a low of $80 with allotments made going towards raw materials which were allotted US$16.6 million, machinery and equipment – US$4 million.

Other priority allotments went to consumables which received US$2 million, distribution – US$2.6 million, electricity and gas – US$2.9 million, pharmaceuticals and chemicals – US$2.3 million.

The small to medium enterprises auction platform received a total of US$2.8 million in line with the priority list.


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