Zimbabwe: Zim Dollar Depreciates By 3,3% On The RBZ Auction

THE Zimbabwe dollar depreciated by 3,3% on the Reserve Bank of Zimbabwe (RBZ) foreign exchange auction platform this week amid sustained allotments prioritising support to key productive sectors of the economy.

A trading update released at the close of business Tuesday showed the local currency weakened from US$1: $90,07 recorded last week to US$1:$93,08.

Analyst at Ethos Capital Partners, Yona Menon described the movement of the exchange rate as a realistic development which will reduce the gap between the official and parallel market rates.

“I think it’s a logical move in the circumstances, but more still needs to be done to address the problem of foreign currency shortages in order to meet local demand,” he said.

The depreciation comes after almost a year’s long stable official exchange rate of US$1: $85.

Parallel market trade is currently fetching around US$1: $160.

Meanwhile, on the Main Auction, 559 bids were received which totaled US$37,3 million out of which  US$36,6 million was allotted.

The highest bidding rate on the platform reached $102 and priority towards productivity was sustained with raw materials being allotted US$13,7 million, machinery and equipment US$9,8 million.

On the Small to Medium Enterprises Auction, a total 1 369 bids were received out of which US$37,3 million was allotted on the platform.

Raw materials US$3 million, machinery and equipment US$3,4 million, consumables US$1,8 million.

The highest bidding rates reached $105 and a low of $88,50.

A total of US$47,7 million was allotted on both two platforms.