THE Zim dollar recovered by 4,4% against the USD on the Reserve Bank of Zimbabwe (RBZ) Foreign Exchange Auction this week with the bulk of allotments made going towards productivity-related needs.
A trading update released at the close of trading this week shows that the value of the ZWL went up to US$1:ZW$ 4 505 down from a premium of ZWL4 711 recorded last week to signify a 4,37% recovery.
Accordingly, traders are allowed to peg their prices at a maximum of ZW$4 955 against the greenback after factoring in the -/+10% over and above the exchange rate premium allowable range.
The parallel market has also seen the recovery of the ZWL with premiums pegged being consistent with official market premiums.
Beginning mid-May 2023, the Zim dollar has cumulatively recovered by about 40% in a development market analysts have attributed to the economy’s response to the raft of measures employed at the close of the year’s first half.
On the Wholesale Auction- a platform where banks purchase USDs for onward selling to their clients, a total of US$7,9 million was allotted from the 16 bids submitted but the section could not exhaust the US$20 million that was on offer.
The Retail Auction platform allotted a grand total of US$601 650 with the bulk of it going towards supporting productivity-related needs.
Raw Materials received US$179 672, Machinery and Equipment imports US$96 841, Consumables US$18 497, Services US$210 545, Retail and Distribution US$50 000, Pharmaceuticals and chemicals US$46 093. Bidding rates on the two platforms reached a high of ZW$4 580 and a low of ZW$4 480.
Source NewZimbabwe
