Foreign Exchange Mobilisation

auction, excluding sales to bureaux de change, rose by 72% to US$1.86 billion in 2021.

The Weekly US$50 Bureau de Change Facility

24.The Bank introduced this facility in the second half of 2021, on 30 August 2021, to cater for the general foreign currency requirements for the public at the official exchange rate. A total amount ofUS$23.1 million was disbursed to 461 908 individuals as at 31 December 2021. The Bank was of the

considered view that this facility would meet the small foreign currency requirements of the public for, among other things, medical expenses and fuel at the official exchange rate and thus improving the supply of foreign exchange in the market.

25.Whilst the facility has gone a long way in assisting the needy, the facility has been highjacked by those that seek to make arbitrage profits. This behaviour calls for the Bank to review the facility.

Foreign Exchange Mobilisation

26. The Bank continued to negotiate for offshore lines of credit to support the foreign exchange auction system, refinance existing obligations as well as meeting the country’s balance of payments requirements in 2021. In this regard, the Bank arranged a US$150 million Letter of Credit (LC) facility from the African Export-Import Bank (Afreximbank) which helped in reducing pressure on the auction. The Bank is also pleased by the role the

banks played in availing to their clients LCs and foreign currency advances from their own positions to the tune of US$375 million.

27. The ultimate solution to the country’s foreign currency situation is not borrowing but increased production, improved productivity and efficient mobilisation of domestic financial resources.