ZWL down 4, 7% on the RBZ Auction, but prices remain stable
Business Reporter
THE official exchange rate depreciated by 4,7% on the Reserve Bank of Zimbabwe Foreign Exchange Auction this week but prices in retail outlets have remained stable demonstrating that traders are now used to the fluctuations on the market.
A trading update released at the close business Tuesday shows that the official exchange rate depreciated to US$1: ZWL5 252 from the rate of ZWL5 015 reached last week signifying a 4, 72% decline.
However, a visit by The Humanitarian Post to most retail outlets shows that prices of most basic commodities have remained stable in a development which market analysts attribute to the market’s maturity in managing exchange rate dynamics.
The platform was conceived in June 202 as part of efforts aimed at neutralizing the over reliance by companies on the parallel market as the primary source of foreign currency.
Though most companies US$ needs remain a pressing challenge, the platform has managed to ease such needs and is so far the largest local source of foreign currency.
The Wholesale Platform where the RBZ sells available foreign currency to banks for onward trading to their clients was allotted US$18,7 million while the Retail Auction platform which sells foreign currency to small companies was allotted US$1,12 million.
Meanwhile, bidders on the Wholesale platform did not manage to snap up the US$20 million on offer in what market watchers believe to be an indicator that the supply of ZWL is still limited.
On the Retail Auction, Raw materials were allotted US$391 921, machinery and equipment US$230 878, consumables US$157 183, services US$236 196, Retail and Distribution US$33 776 among others.
