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Official Zimdollar rate weakens by 1,9 % on the RBZ auction

by Staff reporter
03 Nov 2021 at 05:14hrs | Views
THE official exchange rate recorded a slight decline of 1,9 % on the Reserve Bank of Zimbabwe (RBZ) foreign currency auction platform amid lucrative allotments to support the key productive sectors of the economy.

A trading update released at the close of business Tuesday shows that the official exchange rate reached US$1: $98, 98 up from US$1: $97, 13 recorded last week, effectively weakening by 1,90 %.

Market watchers believe that this week's slight decrease of the local currency against the greenback is an indicator that the official exchange rate is moving towards stability considering that the Zimdollar weakened by bigger margins from around US$1: $85 to the current levels.

Meanwhile, the Main Auction received 651 bids and sustained support towards the key economic productive sectors after allotting US$12,9 million for raw materials, machinery and equipment US$10,6 million, consumables US$3,3 million, services, US$2,2 million, retail and distribution US$4,2 million.

A total of US$36,2 million was allotted on the main auction platform.

"On the Small to Medium Enterprises Auction a total 1 334 bids were submitted with a total value of US$10, 1 million. Productive needs like raw materials received US$2, 3 million, machinery and equipment US$3,7 million, consumables US$1,4 million and services US$1,1 million," the RBZ said in its update Tuesday.

The developments come shortly after the RBZ set its priorities towards putting in place mechanisms to rein in the parallel market volatility as opposed to closing the gap between the parallel and official exchange rates.

Currently, exchange rates on the parallel market stabilised following the implementation of a raft of measures implemented last month with exchange rates averaging between US$1: $140,00 and US$1:165,00.

Source - NewZimbabwe
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