Zim dollar slides 0.34% on the RBZ Auction




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THE ZW$ slightly declined by 0,34% on the Reserve Bank of Zimbabwe (RBZ) Foreign Exchange Auction platform but continues to maintain a close range behind the parallel market premiums.

A trading update released at the close of business Tuesday shows that the local currency depreciated to a premium of US$1: ZW$ 5 738 down from a premium of ZW$5 718 recorded last week to signify a 0,34% decline.

Traders are allowed to peg prices up to ZW$6 201 against the greenback to maintain a close range behind the parallel market where the widely accessible rate is around US$1: ZWL 7 000.

Some traders are charging much more depending on the demand and supply factors around the trades.

Allotments made on the Wholesale Auction- a platform where banks access the foreign currency for onward selling to their clients show that all the 20 bids submitted were granted with a total US$17,4 million being disbursed.

However, the platform could not exhaust the US$20 million on offer leaving a surplus of US$2,6 million in a development which proves that ZW$ supply is still limited and faring within sustainable margins.

On the Retail Auction, a total of US$1,9 million was availed with allotments being tilted in favor of supporting key productivity related needs such as raw materials which received US$582 700, machinery and equipment US$610 987, consumables US$153 558, services US$340 857, retail and distribution US$179 261.