Zimdollar Depreciates By 0,86% On The RBZ Auction

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By Alois Vinga

THE Zimbabwe dollar this week slightly depreciated by 0,86% on the Reserve Bank of Zimbabwe Foreign Exchange Auction platform amid strategic allotments meant to support companies to meet their productivity needs.

Last week the official exchange rate stood at $115,42 before slightly depreciating to $116,65 signifying a 0,86% decline in value.

A trading update released at the close of business shows that a total 118 bids were rejected on the SMEs auction platform and 86 bids on the main auction, a development which experts have hailed for as a strategic move aimed at ridding the auction of bogus speculators.

Allotments were tilted towards meeting the productivity needs of qualifying companies with raw materials needs being allotted US$13,2 million, machinery and equipment US$7 million, Consumables US$2,7 million, Services US$1,9 million, retail and distribution US$3,4 million, Pharmaceuticals and chemicals US$1,4 million, paper and packaging US$837 273.

A total US$30,7 million was allotted on the Main Auction platform.

On the SME Auction, the total value of bids accepted amounted to US$6,7 million with the highest bidding rate reaching  $130 and lowest bidding rate $107.

Raw materials needs were allotted US$1,5 million, machinery and equipment US$2,1 million, consumables US$961 908, Services US$1 million, Retail and Distribution US$554 044, electricity US$10 000, pharmaceuticals and Chemicals US$314 122.

The grand total awarded on both platforms was US$37,5 million.