Harare - Zimbabwe last week introduced Treasury bills for the first time since dollarisation.
Since dollarisation, the only short-term money market instruments available in Zimbabwe are seven-day, 30-day and 90-day papers.
But last week on Thursday, the Reserve Bank of Zimbabwe (RBZ) issued Treasury bills (TBs) in minimum lots of $100 000.
The first issue was for $15 000 000, with interest on a tender and yield basis on a 365-day year.
The interest rate was to be based on the average yield.
According to local newspaper The Herald, the reserve bank however rejected all bids for the $15m TBs.
RBZ sources quoted by the paper said bids ranged between 5.5% and 15% per annum.
“The majority of the bids were quoting interest rates of more than 10% which the RBZ was not comfortable with,” said the source.
Treasury bills were last sold in 2008.
TBs qualify as “risk free” prescribed assets for purchase by banks, pension funds and the insurance industry in general.
Zimbabwean banks are currently operating without an interbank market while the RBZ is undercapitalised to perform the lender of last resort function.
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