THE Reserve Bank of Zimbabwe (RBZ) yesterday issued a ZW$2,1 billion Treasury Bill seeking to raise funding from the market to support development programmes and public cashflow management.
Treasury Bills (TBs) are short-term dated securities used by governments when borrowing money from the market and are usually issued by central banks.
The new TB has a tenure of 270 days and the offer opens today at 8am and closes at 11am, said the Apex Bank in a public notice.
“The Reserve Bank of Zimbabwe (RBZ) on behalf of the Government of Zimbabwe hereby invites commercial banks, building societies, POSB and IDBZ to subscribe to Government Treasury Bill Tender amounting to two billion one hundred million (ZW$2,1 billion),” said the RBZ.
“Application must be for a minimum amount of ZW$1 million. The number of bids per investor is restricted to two and copies of application forms are available from RBZ local dealers, 80 Samora Machel Avenue, Harare.
“Applications should be clearly marked “Zimbabwe Government 270-Day Treasury Bill.”
Meanwhile, the Zimbabwe dollar lost grip against the Unites States dollar at the forex auction system on Tuesday where it traded at US$1: $138,2.
Last week the local currency traded at $134,1 against the green back.
According to the RBZ weekly update, this week’s auction saw a total of US$36,8 million being allotted.
The main auction was allotted US$30,2 million and Small and Medium Enterprises (SMEs) got US$6,6 million.
Since its establishment in June 2020, the auction system has allotted much of the foreign currency to the procurement of raw material, machinery and equipment.
This week a total of US$14,2 million was allotted towards the procurement of raw material by both the main auction and the SMEs auctions.
US$9,7 million was allotted towards the procurement of machinery and equipment by both auctions.
The other funding was allotted to sourcing of consumables like tyres, electricals as well as facilitating services such as loans, education, dividends and disinvestments.
The main auction received 450 bids and 413 were accepted while the SMEs auction received 1 102 bids and 1 011 were accepted.
During the first two months of 2022, RBZ indicated that about US$218,4 million was allocated to the productive sector taking the cumulative amount since its introduction to US$2,8 billion. – The Chronicle