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Monday, February 6, 2023
HomeBusinessZim Dollar Sheds 0.32 Percent

Zim Dollar Sheds 0.32 Percent

The Zimbabwe Dollar lost 0.32 percent on the auction system this Tuesday to close at ZW$ 628.1975 against the American dollar from ZW$ 626.1893 previous week.

The latest movement remains within sustainable margin between the official rate and the parallel market rates which are anything between ZW$ 700 and ZW$ 780.

Authorities have managed to reduce the difference between the parallel market rates and the official rates to an average of less than 15 percent in recent weeks against highs of more than 80 percent earlier this year thanks to several interventions which includes the introduction of gold coins which mopped up close to ZW$ 2 billion from the market since their introduction.

This has resulted in the easing of exchange rate pressures on the local currency.

In today’s auction, a total of 186 bids were received from both the SME and Main auctions with 183 being accepted and allotted.

The highest rate received was ZW$ 670 which is within parallel market levels. However, the lowest bid allocated was ZW$ 590.

The Main auction received a total of US$ 9.7 million while the SME auction received US$ 1.3 million which resulted in a grand total of US$11.1 million being allotted to local companies.

Raw materials remain the biggest foreign currency consumer from the auction for both the SME and Main auctions followed by machinery and equipment.

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Analysts say this reflects a positive picture which tells that there is more spending on production and retooling by most companies which should inspire growth.

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