The Reserve Bank of Zimbabwe (RBZ)’s inaugural foreign currency auction for small businesses yesterday saw a total allocation of US$460 167.

A total of 40 bids were received during the auction, while seven bids were disqualified.

The highest bid was $85 while the lowest was $75.

The central bank said the weighted average rate remained at the same level of the main auction, which was 80,4 to the United States dollar.

The bulk of the US$460 167 (circa US$270 000) was allotted for raw materials and equipment.

Observers say the introduction of the forex auction for small businesses will give them a chance againt the big players, as well as remove them from playing on the illegal foreign currency market.

“Their their lowest bid was actually below that of the main auction at 75, which could be indicative that SMEs could not handle the heat in the main auction,” said analyst Tongai Chigumira.

“So in my view they won’t make much of a significant impact on the rate even if they participate on the bigger auction.”

Meanwhile, the RBZ has said the auction for small businesses will now be merged with the main auction on Tuesdays.