Zimdollar retreats again

THE Zimbabwe dollar has again weakened against the United States dollar at the weekly forex auction system on Tuesday where it traded at US$1: $127,3.

Last week, the local currency traded at $124 against the greenback.

According to an update by Reserve Bank of Zimbabwe (RBZ) after this week's auction, a total of US$37,3 million was allotted.

At this week's auction, the main auction was allotted USS31,2 million and Small and Medium Enterprises (SMEs) US$6,1 million.

As has been the tradition, much of the foreign currency was allotted to the procurement of raw material, machinery and equipment.

A total of US13,3 million was allotted to the procurement of raw material by both the main and the SMEs auction.

Also US$9,8 million was allotted towards the procurement of machinery and equipment by both auctions.

Other purposes for which the companies at the auction system were allotted foreign currency were sourcing of consumables like tyres, electricals as well as facilitating services such as loans, education, dividends and disinvestments

The main auction received 521 bids and 471 were accepted and SMEs auction received 970 bids while 899 were accepted.