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Zimdollar near flat at $81.44 against the US dollar

by Staff writer
29 Sep 2020 at 17:48hrs | Views
The local currency appreciated a marginal 0.06% as it firmed against the dollar in the latest auction. The Zimdollar now trades at 81.4439 against the dollar from 81.4965 attained last week.

The latest appreciation cements the trend of gains noticed during the month of September as the local currency was 2.34% firmer against the USD.

This week the highest allotted rate was 86.00, dropping down from last week's 86.70 and the lowest rate for the main auction coming in at 78.00 which was unchanged from last week thereby narrowing down the spread between bids to 10.26% from 11.15% last week.

This, however, comes as the ZNCC national president Tawanda Mugaga blasted the auction system saying that those on the priority list were rigging the auction as they were bidding lower rates since they have preference. He called for the priority list to be abandoned that the SMEs auction be abolished as it was not representing the entire interests of the sector.

A total of US$24.51m was apportioned with the main auction at US$23.07m and SMEs US$1.44m. This is lower than the $30.41m allotted last week.

Raw materials continued to receive the highest allocation at US$8.86m as the narrative continues to favour production. Machinery and Equipment was allotted US$3.28m, Consumables received US$3.45m. Retail and distribution US$2.34m, Services US$2.57m was the last category to receive over a million with US$2m. Pharmaceuticals and Chemicals and Fuel, Electricity and Gas, were among other sectors to be allotted funds through the auction system today.

The cash parallel market rate like other parallel market rates has remained stagnant for seven weeks now as it currently stands at 85. The Zipit rate also remained range-bound at 105-110 for large amounts although liquidations towards the end of last week saw the rate dropping to 103. Mobile money rates were quoted at 96-98, while Zipit lower amounts are currently trading at 100-102.

The Coronavirus second wave has resulted in the surge of alternative investment assets and the crypto world has also benefited. Cryptocurrencies were mostly up in the day but closed on a mixed note. Bitcoin was up 0.66% to $10 893 with Bitcoin Cash gaining 0.65% the most in the day to $236.04. Ethereum was the sole loser in the day after it was down 0.17% to $373.22.

Source - finx