Business Reporter
THE ZW$ depreciated slightly on the Reserve Bank of Zimbabwe (RBZ) Foreign Exchange Auction this week with a section of market watchers attributing the decline to the reduction of usable local balances in the market.
A trading update released at the close of business Tuesday shows that the official rate depreciated to US$1: ZW$ 6 926 down from ZW$6 713 set by the Wholesale Auction last week to signify a 3,1% depreciation margin.
A total US$1,1 million was allotted on the Foreign Exchange Auction with US$10,6 million being allotted on the Wholesale Auction.
Analyzing the results , economist Persistence Gwanyanya said the following;
1) Today’s Wholesale and Dutch Auction results confirm my argument of tightening ZW$ conditions
2) Only 12 out of 19 banks managed to submit their applications for forex ostensibly on account of tight ZW$ positions.
3) Imagine what will happen next week after pyts QPDs (quarterly pyt dates)
4) As l have always argued, aggressive demand for ZW$ by Gvt will be a game changer
5) That way we expect voluntary US$ liquidation, which is key to sustaining stability
