Zim dollar maintains stability at forex auction
THE Zimbabwean dollar has maintained its stability against the United States dollar trading at $105,7 at this week’s foreign currency auction system.
The introduction of the foreign currency auction system has made access to foreign currency easier for companies that want to import equipment and raw materials.
The platform has also been credited for the enhancing the prevailing macro-economic stability, which has been hailed by private sector leaders for assisting price discovery.
Last Tuesday, the local dollar traded at $105,7, breaching the $100 mark for the first time since the forex auction platform was introduced in June 2020.
A total of US$42 million was allotted to both small scale and established business bidders this week compared to US$41,7 million shared last week.
The bulk of the forex was allotted to companies mainly for raw materials, machinery and spare parts among critical industrial consumables.
A total of US$16,5 million was allotted to raw materials and US$12,5 million to machinery and equipment.
This week fuel, electricity and gas did not get any allotment but consumables got US$4,9 million while the retail and distribution sector got US$2,9 million.
According to Reserve Bank of Zimbabwe (RBZ) update, a total of 379 bids were allotted at themain auction and 601 bids were allotted at the Small to Medium Enterprises (SMEs) auction.
Zimbabwe instituted the foreign exchange auction market in June last year and the platform continues to play a huge impact in availing foreign currency to key productive sectors. — chronicle.
