Auction, interbank exchange rate gap narrows
THE official foreign currency auction and interbank exchange rates almost clocked parity
this week.
foreign currency
The auction rate is at US$1: $290,1 and the willing buyer willing seller interbank rate is atUS$1: $295,7.
Last week the forex auction rate was pegged at US$1: $258,5 whereas the interbank rate was at US$1: $286,8.
A week before the introduction of sweeping monetary policy measures by the Government, the local dollar was trading at $173,3 to the US-dollar at the auction system.
The narrowing of the exchange rate gap comes after the Government recently introduced drastic measure to curb inflation.
These include the liquidation of the surrender portion of export proceeds to be settled at the willing buyer willing-seller exchange rate, suspension of third-party country payment on foreign payments and fostering discipline in the stock market by prohibiting inter account transfers, among others.
Commenting, economist Mr Reginald Shoko said it was too early to conclude there was exchange rate stability but said this could be a result of discipline provided by Reserve Bank of Zimbabwe (RBZ) through allocating available forex.
“We need to appreciate that at the moment RBZ is able to allocate the forex they have unlike in the past when it took long to pay bidders,” he said.
Mr Shoko said merging rates are due to discipline provided by RBZ through allocating what they have.
Meanwhile, in latest update following the Tuesday auction, the RBZ said US$25 million was allotted to bidders with US$4,4 million given to Small and Medium Enterprises (SMEs) and US$20,6 million allotted to the main auction.
The bulk of the foreign currency continues to be channelled towards the procurement of raw materials and this week’s auction saw US$11,9 million being allotted for raw materials.
Machinery and equipment received US$6,6 million at both auctions while the other resources were channelled towards the procurement of consumables like spares, tyres and electricals, services, including loans, education, retail and distribution amongst others.
— The Chronicle
