News / Local
Zimdollar maintains stable range on RBZ Auction, parallel market
23 Nov 2023 at 00:45hrs | Views
The Zimbabwean dollar has maintained a stable range on both the Reserve Bank of Zimbabwe (RBZ) Foreign Exchange Auction and the parallel market platforms in recent weeks, according to a trading update. The official exchange rate depreciated slightly to US$1: ZWL 5,774 from the previous ZWL 5,755, indicating a modest 0.32% decline. Over the past weeks, the exchange rate has experienced minimal fluctuations, with slight depreciations of 0.29% reported a fortnight ago.
On the parallel market, rates hover around US$1: ZWL 7,000, although some traders may offer higher premiums based on supply and demand dynamics. Despite this, the premiums on both platforms have remained relatively stable, marking a departure from the volatile fluctuations observed earlier in the year.
Market analysts interpret this trend as a signal of the authorities' commitment to controlling excess availability of the Zimbabwean dollar, potentially contributing to market stability in the coming period.
On the Wholesale Auction platform, out of the US$20 million disbursed for local banks to purchase foreign currency, only US$17.3 million was taken up. The Retail Auction platform allotted a total of US$2.1 million, prioritizing support for productivity-related needs. Allocations included US$866,444 for raw materials, US$586,565 for machinery and equipment, US$113,022 for consumables, US$298,514 for services, US$200,761 for retail and distribution, and US$28,937 for pharmaceuticals and chemicals, among others.
On the parallel market, rates hover around US$1: ZWL 7,000, although some traders may offer higher premiums based on supply and demand dynamics. Despite this, the premiums on both platforms have remained relatively stable, marking a departure from the volatile fluctuations observed earlier in the year.
Market analysts interpret this trend as a signal of the authorities' commitment to controlling excess availability of the Zimbabwean dollar, potentially contributing to market stability in the coming period.
On the Wholesale Auction platform, out of the US$20 million disbursed for local banks to purchase foreign currency, only US$17.3 million was taken up. The Retail Auction platform allotted a total of US$2.1 million, prioritizing support for productivity-related needs. Allocations included US$866,444 for raw materials, US$586,565 for machinery and equipment, US$113,022 for consumables, US$298,514 for services, US$200,761 for retail and distribution, and US$28,937 for pharmaceuticals and chemicals, among others.
Source - newzimbabwe
