- The Zimbabwe dollar traded at 801.6023 from 779.2101 against the US dollar
- Year-to-date deficits widened by 90%
- Month-to-date deficits widened by 12%
Harare- The Zimbabwe dollar traded at 801.6023 against the US dollar on the latest Foreign Currency Auction Market held on 31 January 2023 widening month-to-date deficits by 12%. During the previous trading, the Zimbabwe dollar traded at 779.3101 against the greenback widening week-to-date deficits by 3%.
By end of January 2021, the Zimbabwe dollar traded at 82.6756 widening year-to-date deficits by 90%. Since the introduction of the Auction Market on June 23 2020 to date, the Zimbabwe dollar has shed by 93% against the United States dollar.
On the interbank market, the Zimbabwe dollsr traded at 796.5215 on the 1st of February 2023 while the parallel market rate accelerated from ZWL1100 at the beginning of January 2023 to ZWL1200 on the 31st of January 2023.
The highest rate received against a single greenback was ZWL860 on both auctions while the lowest stood at ZWL800 from a higher of ZWL825 and a lower of ZWL750 last week.
Up from US$13.8 million, US$18 million was allotted during the week under review.
The continued decline of the Zimbabwe dollar and the continued acceleration of the allotments and highest bids against the Zimbabwe dollar shows that ZWL liquidity continues flooding the market despite the government’s utterance that there is a tight monetary policy stance at hand.
Also, it testifies to the failure of the reactionary policies employed by the government to stabilise the economy. Command can only work in politics, not in economics. The economy will respond differently.
With the pending presidential elections, the Zimbabwe dollar is expected to continue losing more ground against the greenback as the government will be battling to fund its campaign projects,thus, increasing ZWL liquidity.
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