Mishma Chakanyuka, Staff Writer 
AXIA Corporation (Axia) says it continues to face significant foreign currency gaps as retail and distribution does not rank in higher forex allocation tiers on the auction market.
The auction market was introduced in June 2020 to improve productive sectors of the economy’s accessibility to much-needed foreign currency. Some of the sectors that benefit from the platform include companies or businesses in mining and agriculture.
“The group has continued to participate on the official auction system to maintain reasonable pricing to our customers. However, as retail and distribution do not rank in higher allocation tiers, the business continues to face significant foreign currency gaps which manifest in pricings risks, restocking challenges and balance sheet preservation challenges,” the group said in a trading update.
Despite these challenges, the retail and distribution group witnessed a positive performance for the third quarter that ended on March 31, 2023.
The group’s TV Sales & Home unit volumes for the quarter increased by 12 percent against the comparative period.
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