• ZWL depreciated by 3% to ZWL 403.4048
  • Year-to-date losses widened by 72%
  • Month-to-date losses widen by 9%

Harare- Zimbabwe dollar (ZWL) continued trading on the back foot at the latest auction market held on Tuesday as demand for the greenback and currency devaluation continues to grow.

The ZWL which is losing its fundamental duties of acting as a store of value and measure of value went down by 3% breaking the 400 region to ZWL 403.4048 against a single US dollar.  

Last week Tuesday, the ZWL dollar closed at 391 against the US dollar. 

On the parallel market, the disparity between the US dollar and the Zimbabwe dollar has widened to between 800 and 1000 and it is that huge disparity which plays a huge role in fuelling inflationary pressures. 

The continued fall signals the worthless of the government’s effort to prop up the currency, including the ones announced by President Emerson Mnangagwa that saw lending being suspended and the ones passed by Treasury in June that saw bank rates spiked to record highs.

Due to a lack of confidence in policymakers, it is not surprising to see the Zimbabwe dollar continuing on the tailspin even after the launch of gold coins next week. 

Perhaps, that will be the time the government will realise that the Zimbabwe dollar and stability will never embrace each other but always runs parallel. Perhaps it will be the time that the government will realise that they are trying to resurrect a dead currency, which is a mission impossible. 

Year-to-date losses have widened by 72% while week-to-date losses by 9%. 

When the auction market commenced on 23 June 2020, the Zimbabwe dollar started trading at 57.3582 but to date, losses have surpassed a peak of 86%.

Meanwhile, US$22.9 million was allotted down from US$23.5 million last week while the highest rate received was ZWL 424 against the dollar and the lowest bid came at ZWL 368 for US$. 

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