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Zimbabwe Dollar continues on a downslide against the dollar

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The Zimbabwe dollar has continued to drop against the United States Dollar (USD) as indicated by the Reserve Bank of Zimbabwe’s Foreign Exchange (Forex) Auctions.

Since the introduction of the forex auction system last year, the Zimbabwe dollar has been steady with marginal drops registered here and there.

According to the results from the Tuesday, 9 March 2021 RBZ forex auction, the weighted average this week fell marginally from ZWL$83. 8891 last week to US$1: ZWL$83. 9827 this week.

US$3 million was allocated to the Small to Medium enterprises forex auction while US$34 million was allocated to the main forex auction.

In total, US$37.1 million was allotted this week, with the bulk of the allotment (US$16.4 million) going to raw materials followed by machinery and equipment (US$6 million).

241 bids were received on the Small to Medium enterprises forex auction, with 205 accepted and 36 disqualified.

On the main forex auction, a total of 371 bids were received, 298 were accepted while 73 were disqualified.

The Reserve Bank of Zimbabwe (RBZ) said bids that were disqualified were not eligible in terms of the Priority List.

Bids with overdue CDIs, outstanding Bills of Entry (BOEs), and those with sufficient FCA balances were also disqualified.

Some bids were allotted on a pro-rata basis to conform with the Import Priority List, the RBZ said.

Purpose Amount Allotted SME Auction (US$) Amount Allotted Main Auction (US$)
Raw Materials 658 141.19 15 720 208.45
Machinery and Equipment 618 280.19 5 336 512.45
Consumables (incl Spare, Tyres, Electricals) 566 806.87 2 893 994.60
Services (Loans, Education, Dividends, Disinvestments, etc) 281 116.43 2 061 071.82
Retail and Distribution (Incl. Food, Beverages, etc) 195 839.97 2 951 055.68
Fuel, Electricity and Gas 257 000.94 2 439 825.38
Pharmaceuticals and Chemicals 231 964.61 2 303 755.38
Paper and Packaging 162 417.37    465 503.66
Total 2 971 567.57 34 171 927.42