Business Reporter
THE ZW$ gained by 4,8% on the Reserve Bank of Zimbabwe (RBZ)Foreign Exchange Auction Tuesday amid concerns that most retailers remain reluctant to reducing prices of basic goods accordingly in a development which continues to hurt the consumers.
A trading update released at the close of weekly transactions shows that the rate moved to US$1: ZW$4 998 this week up from the rate of US$1: ZW$5 251 reached last week.
The ZW$ has recorded significant gains on the RBZ Auction in recent weeks , ending market instability which was triggered by volatile exchange rates in the past months.
In comparison, exchange rates premiums have remained stable on the parallel market at a stable rate of around US$1:ZW$6 000 amid acute float shortages to fund higher premiums, a development which market analysts have since attributed to the rising local currency demand choking the market.
To this end, Treasury has swiftly moved to allow tax payments in ZW$ over and above the raft of measures aimed at mopping up excess liquidity.
During the day’s trades, players at the RBZ Wholesale Foreign Exchange Auction largely comprising bigger corporates only managed to take up US$5,8 million despite the fact US$20 million being on offer, testifying the degree of wilting ZW$ reserves.
Only ten bids were submitted on the platform.
On the Retail Foreign Exchange Auction where smaller traders for foreign currency a total US$US$460 130 was allotted with priority going towards productivity related needs.
