BY FIDELITY MHLANGA
THE Reserve Bank of Zimbabwe (RBZ) rejected bids submitted for this week’s $300 million Treasury Bills (TBs) auction with analysts saying the snub was due to the fact that the central bank could not meet a request for high rate of return by investors.
The central bank on Monday issued another $300 million TBs tender to mobilise funds for its programmes, a development that is feared to further increase money supply in the market.
It invited commercial banks, building societies, Peoples Own Savings Bank and Infrastructure Development Bank of Zimbabwe to subscribe to a government TB tender.
But all bids to the tender were rejected by the central ostensibly on the basis that after factoring in soaring inflation, lenders could have requested for a better rate of return than what the central bank had offered, analysts noted.