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CFI hails RBZ for stabilising Zimdollar

by Staff reporter
25 Aug 2021 at 08:33hrs | Views
AGRO- industrial concern, CFI holdings has hailed the Reserve Bank of Zimbabwe (RBZ) for putting in place measures aimed at reinforcing the stability of the local currency which have seen a deceleration of inflation.

Presenting a trading update for the third quarter ended June 30, 2021, CFI Holdings company secretary, Panganayi Hare hailed authorities for putting in place policies that encouraged the flow of foreign currency.
"The operating environment continued to improve following the introduction of the foreign currency auction system and the use of the United States Dollar as a mode of payment in June 2020.

"These measures reinforced stability and assisted the Group in sourcing various raw materials and merchandise efficiently," said Hare.

The group credited the policies for the reduction of month-on-month inflation in the third quarter which declined to 2.7% against 21.5% for the comparable period and 4.1% in the first half of the year.

 "Average annual year-on-year inflation slowed down to 154.2% against 762.8% in the third quarter of 2020. The Group has continued to prioritize the safety of its employees, consumers, and products in the face of the ongoing Covid-19 pandemic," Hare said.

The remarks coincided with RBZ weekly allotments reaching a record US$51,6 million up from the average allotment figure hovering around US$40 million.

Demand for foreign currency continued to rise reaching 1 396 total bids received on both the SME and main auction platforms.

Priority towards revamping the country's economy was sustained with raw materials, machinery, and equipment receiving US$14, 9 million and US$8, 3 million respectively on the main auction platform.

The same needs received US$3, 4 million and US$4, 1 million respectively on the SME platform.

A total of US$36,5 million and US$15,1 million were allotted on the Main and SME auction platforms respectively.

Meanwhile, during the period under review, sales volumes in the key revenue drivers improved by 169%.

The growth was attributable to an increase in aggregate demand following the relatively good 2020/2021 rainy season, which boosted both summer crops and the tobacco season and in part the resurgence in construction activities.

The Group also benefited from growing demand for Agrifoods' stock-feeds after it exited judicial management in the prior year as well as the opening of additional retail stores during the period.

Source - newzimbabwe