Local currency virtually unmoved in latest auction

  • Gained an insignificant ZW$0.0001
  • Total amount allotted increased to US$30.20
  • Highest bid received scaled up to ZW$89 on the main auction

Harare – The Zimbabwean dollar has come out of this week’s foreign currency auction basically unchanged after posting a gain of ZW$0.0001 against the greenback.

The local currency closed the auction at ZW$84.4826 for a single denomination of the U.S Dollar from ZW$84.4827 in the prior week.

The last time the local currency gained was two weeks ago and this week’s gain, though insignificant is only the fourth of the year.

The total number of bids on the main auction this week increased by 16 to 332 from 316 in the week prior.

On the SME auction bids climbed to 310 this week from 298 in the comparative week, signalling an increase by 12 bids.

Meanwhile, the total amounts allotted on the main auction increased from US$29.17 million to US$30.20 million and to US$3,90 million from US$3,79 million on the SME auction.

Of interesting note, however, is that the highest bid on the main auction increased to ZW$89 from ZW$87 last week, indicative of an increase in demand for foreign currency on the auction which however has the dire effect of devaluing the local currency.

Similarly, the highest rate on the SME auction increased by ZW$0.50 cents to ZW$88.

Meanwhile, raw materials remained the biggest taker of foreign currency on the auction, having been allotted US$12.26 million of the total funds on the main auction and US$1.03 million of the total funds allotted on the SME auction.

Equity Axis News


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