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Zimdollar weakens against USD

by Staff reporter
03 Nov 2020 at 20:15hrs | Views
The local currency continued to fluctuate within the 81.00 band as it depreciated against the dollar. The ZWL lost 0.3929% to trade at 81.6740 against the dollar from 81.3531 attained late last week.
More telling is that the spread between bids widened as market sentiment begins to question how select banks are relating to the auction system especially considering the challenges being faced in honouring allotments. The highest allotted rate was at 90 increasing from last week's 89.00 and the lowest rate for the auction came in at 79.10 which was lower from last week's 79.90 thereby increasing the spread between bids to 13.78% from 12.56%. It also comes amid rising concerns from sellers who face costs at the black-market rate but must sell at a much lower price at the auction system.
A total of US$28.26m was apportioned to both the main auction (US$26.52m) and SMEs (US$1.74m) at auction after a combined 373 bids were accepted from 408 bids.

Raw materials continued to receive the highest allocation at US$12.46m in line with the priority list. Machinery and Equipment was allotted US$4.81m, Consumables received US$2.73m, Services were allotted US$2.48m and Retail and Distribution got US$2.27m.  

The cash parallel market rate remains at 82 although some sellers are at 85. The Zipit rate remained stable within the 105-107 range. Mobile money rates were quoted at 98 and Zipit lower amounts are currently at 100.

The world has its eyes on the US Presidential election, which has been marred by controversy with the incumbent saying he will not accept any votes counted after Election Day. On the other side Kamala Harris tour bus was attacked by President Trump's supporters in Texas in pre-election activities. In terms of markets, Malaysia saw a 3-month high stock gain as it anticipates a Biden victory.

The popular vote margins are said to be tilted towards Biden, but the closeness of the electoral college votes has resulted in a surge in alternative assets with Bitcoin gaining 2.94% to $13 396.54. Ethereum and Bitcoin Cash also registered gains, with the former putting on 4.95% to $403.15 whilst the latter closed 4.44% stronger at $281.23.

Source - finx
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