RBZ allots US$18, 7 million, gold and tobacco to boost liquidity

Business Reporter

THE Reserve Bank of Zimbabwe (RBZ) Foreign Exchange Auction Tuesday allotted US$18,7 million amid expectations that the just commenced tobacco selling season, coupled with improved gold mining activity due to reduced rainfall will improve foreign currency liquidity.

A trading update released at the close of the weekly auction session Tuesday shows that on the Main platform, the total number of bids accepted reached 266 with the highest bidding rate of US$1: ZW$ 1000 and a low of ZW$915.

Raw material bids received US$7,3 million , machinery and equipment US$3,1 million, consumables US$1,3 million, services US$1,4 million, Retail and distribution US$2,1 million among other productivity related priorities.

A similar trend was sustained on the SME Auction platform with a grand total of US$18,7 million was allotted on both the Main and SMEs Auction.

The official exchange rate closed the day at US$1: ZW$915, 18.

Analysing the trend, economist, Persistence Gwanyanya predicted a positive outlook going forward.

“The official rate remains relatively stable on account of supply and demand dynamics. The US$ liquidity is expected to improve on account of increased inflows from tobacco trading on the back of gold inflows which are also expected to improve as rains subside.

“Unlike in the past it seems there is not yet pressure from the coming elections so far as the markets are still calm. We hope this will continue,” he said.

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