RBZ auction rate strengthens, allots US$35,8 mln

Business Reporter

THE official exchange rate this week further moved towards closing the parallel market gap, in a move widely seen by market watchers as a step in the right direction.

A trading update released at the close of the FX84/2022 auction segment, shows that the official exchange rate moved to US$1:$130, 15 up from US$1: $ 127, 48 recorded last week.

The rates have been going up since February this year from as low as US$1:$117 recorded mid last month to the current thresholds.

Market watchers have hailed the development acknowledging it over its overall impact which has seen the swift closure of the parallel market rate gap and in the process strengthening the stability of the local currency.

The parallel market rates have remained stable for the last months at a high of US$1: $250    largely attributed to the disciplinary measures employed by the Reserve Bank of Zimbabwe (RBZ) targeting the timely mopping up of excess liquidity and placing deserving penalties on exchange rate manipulators.

The trading update also shows that allotments during the day sustained an industrial productivity revamping bias with raw materials on the Small to Medium Enterprises (SME) US$1,78 , machinery and equipment US$2,2 million, consumables  US$1,1 million , services US$751 761, retail and distribution US$684 521.

The highest rate received during the day reached a high of   $145 and a low of $125, 58 with a total US$7,2 million being allotted on the platform.

On the Main Auction , a total 410 bids were received , totaling  US$29,6 million out of which raw materials constituted  US$11,7 million, machinery and equipment US$7 million, Consumables US$1,8 million, services US$1,6 million, Retail and Distribution US$3,6 million, pharmaceuticals US$1,5 million

The grand total awarded on both the platforms reached a whooping US$35, 8 million.

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