THE Zim$ exchange rate moved to US$1:127,84 depreciating by 2,9% this week but slightly moving closer to the parallel market rate which has been stable for over a month now.
A trading update released at the close of business Tuesday shows that the official exchange rate moved to US$1: $127,84 up from $124,01 recorded in the previous week, therefore signalling a 2,9% decline.
On the alternative market, the rates have been hovering around of US$1:230 with some dealers offering higher amounts depending on varying factors.
Top economist Persistence Gwanyanya hailed the development for closing the gap between the official and parallel market exchange rate.
“What is clear is that the official exchange rate is going up against a background where the informal exchange rate is becoming stable. The gap between the two exchange rates continues to close up which will go a long way to restore the local currency’s value,” he said.
He said this, coupled with plans on the cards to clear the foreign currency payment backlogs in the coming two weeks by the central bank will offset the pressures to get foreign currency from the parallel market by corporates and further strengthen the Zim$.
Meanwhile, on the Main Auction platform, US$11,9 million was allotted towards raw materials, machinery and equipment US$7,8 million, consumables US$2,4 million, retail and distribution US$3,7 million, pharmaceuticals and chemicals US$1,3 million among other allotments.
On the SME Auction, raw materials need earned US$1,5 million, machinery and equipment US$1,9 million, consumables US$1 million, services US$521 512, Retail and distribution US$616 198, pharmaceuticals and chemicals US$240 630.
A grand total of US$37,2 million was allotted on the two auction platforms.