ZNCC Frets Over The Scarcity Of USD Sellers On Interbank Market
The Zimbabwe National Chamber of Commerce (ZNCC) has raised concerns regarding the scarcity of United States dollar sellers on the Willing Buyer Willing Seller (WBWS) platform.
This shortage, they argue, is hindering the productive sector’s ability to perform optimally.
In January 2024, the Reserve Bank of Zimbabwe (RBZ) transitioned from the Foreign Exchange Auction System to the WBWS model, envisaging it as a more accurate reflection of the market exchange rate.
However, the ZNCC’s latest State of Industry and Commerce tracker indicates that the WBWS platform is predominantly populated by foreign exchange buyers rather than sellers.
This imbalance in market participants is creating challenges for the productive sector, which relies heavily on access to foreign currency for its operations. The ZNCC report reads in part:
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After the January 2024 disbandment of the Auction System, some firms have been getting foreign currency on the interbank market on a Willing Buyer Willing Seller (WBWS) model.
The lack of willing sellers on the formal market has meant that the WBWS has not been able to meet the foreign currency demand by firms, thus curtailing the achievement of maximum productive capacity and in turn depressing general economic activities.
The ZNCC is a non-profit, membership-based organization that advocates for its members’ interests and promotes economic growth by empowering businesses.
