Zim$ suffers further 3% depreciation on the RBZ Auction

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By Alois Vinga

THE Zim dollar this week suffered a further 3% depreciation on the Reserve Bank of Zimbabwe (RBZ) Foreign Exchange Auction platform, sustaining a downward trend since the beginning of the year.

An update released at the close of trading Tuesday shows that the official rate depreciated to ZW$881, 75 against US$1 down from ZW$856, 84 recorded last week to signify a straight 2, 9% depreciation in one week.

A perusal of the RBZ Auction trading updates dating back to January 17  up to the first week of February  2023 shows that the official exchange rate moved from  US$1: ZW$732 to  ZW$831,60 signifying a 13,5% depreciation.

Market watchers have however hinted that the depreciation is not worrisome considering that it is coming at a time when the parallel market rate remains stagnant at between ZW$900 – ZW$1 100 against the greenback.

On the Main Auction platform, 242 bids tilted in favor of spurring productivity were accepted amounting to US$17,8 million out of which raw materials received  US$9,4 million, machinery and equipment US$2,2 million, consumables US$1,26 million, Retail and distribution US$1,8 million, pharmaceuticals and chemicals US$638 772,41, paper and packaging US$560 438.

A similar trend was sustained on the SME Auction where the highest amounts of money were allotted towards raw materials to the tune of US$461 549, machinery and equipment US$573 835.

“Bids with outstanding Bills of Entry, sufficient ZWL and those with positive FCA balances were disqualified. Some bids were allotted on a pro-rata basis,” added RBZ.