RBZ to resume public auctions

The Reserve Bank of Zimbabwe will soon resume public auctions to raise funding required to finance key Government programmes and move away from private placements with investors.

The central bank has in the recent past been directly approaching individual investors to take up Treasury Bills to raise funds for Government. But the system does not guarantee a defined yield gap.

RBZ Financial Markets deputy director William Manhimanzi said that a committee, made up of RBZ and Ministry of Finance officials had already been set up to work on the return to Open Market Operations.

OMOs pertain to the buying and selling of Government securities, usually to influence liquidity in the economy, but most importantly, to mobilise funds for public sector projects.