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Zimdollar depreciates

by Staff reporter
27 Jan 2021 at 06:10hrs | Views
The local currency depreciated by almost a percentage point on Tuesday in an auction which failed to make allotments on all qualified bids. The Zimbabwe dollar was quoted at 82.6756 after depreciating 0.716% from 82.0833 last week while the black-market rates held steady within the 105-115 range as most formal retailers have adopted black market rates in their operations.
N Richards Wholesalers are operating on 112, pharmacies at 110 while Simbisa in stores are at 100 as concerns continue being raised about the crawling peg at the auction.
According to data from the Reserve Bank of Zimbabwe, combined bids were at a record 500 but only 73% of that received allotments. The total value of bids accepted was at US$39.8 million but only 70% or US$28 million was allotted. The main auction had US$26.04 million and allocations while the SMEs received US$1.97 million.
There was a cut-off of bids at 82, which was the lowest accept rate. The lowest bid rate was at 80. The highest bid rate was at $87 recorded at the Main auction. The difference between the highest and lowest bid moved to 6.10% from 8.75% at the last auction. The average weighted rate is now 4.97% lower than the highest bid from 5.65% due to the currency's appreciation towards the highest bid. The difference between the parallel market rate (of 110) and the average weighted rate is at 28.62%.
Raw Materials continued to be the biggest benefactor as they were allotted US$12.96 mln although this was below last week's US$15.6 mln. Machinery and Equipment was allotted US$4.6 mln, with Fuel, Gas and Electricity, Consumables, Retail and Distribution, Pharmaceuticals and Chemicals and Services receiving amounts above US$1 mln, with Paper and Packaging getting lower.
Meanwhile, in its weekly Reserve Money update, the Reserve Bank noted that Government deposits with the bank were up by $1.37 billion. This signifies a huge withdrawal of liquidity from banks. Coupled with a net sale of foreign exchange by the Bank, reserve money fell by $1.02 billion to $19.73 billion in the week ending 15 January.
The Zipit buying rate was oscillating around 107-109 while the selling price for traders ranged between 113-117 for large amounts. Mobile money rates were quoted at 103 for both One Money and Ecocash transactions.
Cryptocurrencies are currently on a bear run as Ethereum retreated from its all-time high in the week as it lost 4.91% to $1 284.95. Bitcoin was down 2.40% to $31 750.50 as it continues to shy away from the record $40 000 level. Bitcoin Cash eased 2.89% to $423.41.

Source - finx