Zimdollar maintains firm grip against US dollar

THE Zimbabwe dollar has maintained resilience against the United States dollar trading at 84,64 at this week's foreign currency auction system.

The introduction of the foreign currency auction system has made access to foreign currency easier for companies that want to import equipment and raw materials.

The forex auction system has been credited for the prevailing macro-economic stability which has been hailed by private sector leaders.

Last Tuesday, the Zimbabwe dollar traded at 84,61 against the United States dollar. A total of US$42,5 million was allotted to bidders this week compared to US$41,6 million shared last week.

According to the Reserve Bank of Zimbabwe (RBZ) update, a total of 330 bids were allotted at the main while 401 were allotted at the Small to Medium Enterprises (SMEs) auction.

The bulk of the forex allotted to companies is mainly for raw materials.

A total of US$15,4 million was for raw materials procurement while US$7 million was for machinery and equipment.

Consumables and other electrical accessories got US$4,5 million and US$3,9 million went to the retail and distribution services.

The auction platform was introduced last year in June to improve the productive sectors' access to foreign currency.