BAD NEWS: John Panonetsa Mangudya’s Zimdollar LOSES VALUE!


THE Zimbabwe dollar has depreciated by 5,8% against the greenback on the Reserve Bank of Zimbabwe (RBZ) Foreign Exchange Auction.

Market watchers believe the development is a positive step which is slowly moving to close the gap set by the parallel market rate.

A trading update released at the close of the business Tuesday shows that the official exchange rate at the close of business was US$1:ZW$521,34 up from US$1:ZW$494,98 recorded last week to signify a 5,8% decrease.

Market watchers contend that this week’s depreciation is a positive development, which goes a long way to close the gap created by the parallel market premium and in the process achieve exchange rate equilibrium.

The parallel market rates currently stand at around US$1:ZW$800, prompting concerns by industry players for the gap between the two exchange rates to be closed in order to attain acceptability of the local currency.

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The trading update shows that allotments on the Main Auction sustained a productivity spurring priority, with raw materials being allotted US$7,3 million, machinery and equipment US$3,4 million, consumables US$1,3 million, services US$1,7 million, retail and distribution US$806 626, pharmaceuticals and chemicals US$199 333, paper and packaging US$304 084.

The total allotted on the platform was US$15,1 million.

A similar trend was followed on the SMEs Auction, where 415 bids were accepted, with raw materials, machinery and equipment remaining on top priority.

— NewZimbabwe

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