LOCAL DOLLAR ON ROLL! Climbs another 3% in value
The struggling Zimbabwe dollar has made another amazing comeback, gaining 3% against the mighty US dollar. At the latest auction on Thursday, the Zim dollar climbed to $5 251,0640 for every single greenback.
This is the fourth straight auction where our local currency has gained in value. But the speed of the rally has slowed a little. The auction had a total of US$20 million, but local banks could only snap up US$4.5 million of that.
All the bids from banks were accepted this time, with no really low bids getting rejected. The top bid was $5 400,000 per dollar, while the lowest winning bid paid just $5,000,000.
The gap between the top bid and bottom bid narrowed compared to recent auctions. This shows banks are becoming more confident in the Zim dollar.
The auctions are working wonders, with the Zim dollar now 24% higher than last week’s record low. But banks set their own exchange rates, so not everyone is benefiting equally from this rally yet.
The real test will come when the general public starts to see lower prices in shops from a stronger currency. For now, it’s good news that the free-fall of the Zim dollar appears to have been halted. Fingers crossed the gains keep coming!