THE ZWL depreciated by 6,43% on the Reserve Bank of Zimbabwe (RBZ) Auction platform in a development that authorities say is not cause for panic hinting it remains within safe margins. A trading update released at the close of trading Tuesday shows that the official rate reached US$1: ZW$5 015 down from the premium of ZW$4 712 recorded last week to signify a 6, 43% decline.
Last week the local currency depreciated by 1,4% marking the first time ever after recording significant gains since June this year. In comparison, the parallel market rates are hovering around US$1:ZWL6 500 with traders willing to pay more depending on demand and supply advantages.
However, monetary authorities have maintained that the current depreciation on both markets will soon ease off since the premiums are not triggered by major economic drivers like liquidity injections. The authorities also believe that the current depreciation levels are being triggered by post –election predictions fueling market perceptions.
Meanwhile, on the Wholesale Auction platform, a total of 20 bids were received out of which 17 were allotted the sum of US$18,2 million. The platform’s players could not exhaust the US$20 million that was on offer.
On the Retail Platform, a grand total of US$713 590 was allotted with priority going towards sustaining productivity-related needs. Raw Materials were allotted US$45 391, machinery and equipment US$275 395, consumables US$121 390, Services US$161 240, Retail and Distribution US$54 399, pharmaceuticals and chemicals US$47 661.
Source NewZimbabwe
