Reserve Bank of Zimbabwe Governor John Mangudya has directed that all bids for forex have to be submitted through bidders’ bankers four days before the date of the auction.
In a statement, Mangudya said this is being done to give banks ample time to carry out the necessary due diligence processes and assess their customers’ bids as the number of bids being submitted every week now averages 2 000. The statement read:
SUBMISSION OF BIDS UNDER THE FOREIGN EXCHANGE AUCTION SYSTEM
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.
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.
There has been a significant increase in the number of bids being submitted through the auction system, averaging 2 000 per week, and thus the change in bid submission timelines will give banks ample time to carry out the necessary due diligence processes and assess their customers’ bids.
Any bid submitted later than the set time frame shall be disqualified.