Zimbabwe dollar returns to losing ways against US dollar

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  • Weakened to ZWL$84.4827 against US$1
  • Significant recovery in USD demand and activity on the auction
  • Raw materials remain biggest taker of forex

Harare – The Zimbabwean dollar has once again fallen against the greenback after gaining an insignificant ZW$0.0031 cents at last week’s auction.

In this week’s auction, the local currency stumbled back down to settle at ZW$84.4827 for a single denomination of the U.S Dollar from ZW$84.3970 in the prior week.

Last week’s rise was only the third of the year and most probably a fluke gain perpetuated by a temporary slump in demand for the USD and activity on the auction perpetuated by the Easter weekend.

The total number of bids on the main auction that week fell by 108 from 344 in the week prior to that to 226 and have bounced back to 316 in the auction under review.

On the SME auction bids climbed back up to 298 this week from 171 in the prior auction.

Complementarily, the total amounts allotted on the main auction which had dramatically fallen to US$23.19 million on the main auction and to US$2.05 on the SME auction in the previous week, came in at US$29.17 million on the main and US$3,79 million on the SME auction.

All these increases in key auction figures are indicative of a return in demand for the U.S Dollar which consequently devalues the Zimbabwean dollar.

Meanwhile, raw materials remained the biggest taker of foreign currency on the auction, having been allotted US$13.63 million in the latest auction.

Equity Axis News

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