Zim Dollar Moves To $83.39 Against US$ On RBZ Foreign Currency Auction

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By Alois Vinga

THE Zimbabwe dollar Tuesday decreased its value to $83.39 against the US$ at the Reserve Bank of Zimbabwe (RBZ) foreign exchange auction system from last week’s $82.91.

A trading update released at the close of the weekly auction system confirms that the Zimbabwe dollar decreased its value against the US$ by $0.83.

The RBZ exchange rates are following closely behind the black-market rates which currently stand at between 1:85 and 1:100 on cash and mobile money transfers respectively.

According to the latest update, US$14 million was allotted on the main foreign exchange auction where large companies trade.

The highest bidding rate hit $88 while the least bidding rate reached $80 against the US$.

A total of 139 bids were received out of which 33 were rejected for failing to adhere to set regulations mostly involving the misconduct of approaching the market for speculative reasons.

“Bids which were not eligible in terms of the priority list, with outstanding Bills of Entry and those with sufficient foreign currency balances were among the disqualified,” added the trading update.

From the total foreign currency availed, priority went to the purchase of raw materials, which was allotted US$4.9 million, machinery and equipment allotted US$3.8 million, consumables US$1.6 million, and pharmaceuticals got US$1.4 million.

On the Small to Medium Enterprises (SMEs) Foreign Currency Auction, a total US$960 000 was allotted with the highest bidding rate reaching $88 and a low of $75 against the US$.

A total of 85 bids were received while 10 were disqualified for violating the auction’s regulations.

Priority went towards the purchase of raw materials which was allotted US$207 931, machinery and equipment US$162 741, consumables US$151 749, and pharmaceuticals US$140 450.