gtag('config', 'UA-12595121-1'); Zim dollar continues on a stable trajectory – The Zimbabwe Mail

Zim dollar continues on a stable trajectory

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HARARE – The Reserve Bank of Zimbabwe foreign exchange auction system has awarded over 28 million United States dollars to productive sectors of the economy, with the Zimbabwe dollar maintaining stability against the US dollar at 81,34.

Statistics issued by the Reserve Bank of Zimbabwe after Tuesday’s auction showed that the foreign currency was awarded to the main and SMEs auctions to improve productivity.

The local currency unit maintained its 81,34 trend against the United States dollar since the previous auction on Tuesday last week.

The central bank data showed that raw materials dominated allocations followed by machinery, consumables, services, fuel, electricity and gas.

Zimbabwe National Chamber of Commerce (ZNCC) past president, Mr Luxon Zembe said the tight money supply controls by the RBZ have seen an increased demand for the Zimbabwe dollar in both cash and electronic form.

“It seems as if the local currency is finding its range and it is a matter of time before we can realise more from the auction system.”

Economist, Mr Ignatious Matungamire said the increase in foreign currency allocations to industries shows that companies are also recovering from the Covid-19 induced lockdown.

“What is now need is that acceptance of the auction markets as a key indicator of price discovery and going forward on stability.”

The highest bidder on the main auction offered $87 while the lowest accepted bid was $79.

At the SME auction, the highest bid offered was $86, while the lowest accepted bid was $79.

Presenting the mid-term monetary policy, RBZ Governor, Dr John Mangudya, revealed that the central bank has also noted that the auction system accounted for more than 90 per cent of the foreign currency requirements for importers since its introduction in June this year.