Zim-dollar slides against US$ at auction platform

THE Zimbabwe dollar this week shed 5,4 percent to trade at $105,7 against the United States dollar from last week’s rate of $99,9.

A total of US$41,7 million was allotted at yesterday’s auction compared to US$46,9 million last week.

The amount allotted at the main auction was US$36,2 million while US$5,5 million was allotted through the Small to Medium Enterprises (SMEs) auction.

For raw material procurement, US$19,4million was allotted at both the SME and the main auction while US$10,1 went towards support equipment and machinery procurement.

A total of US$94 000 was allotted to SMEs and main auction for fuel, electricity and gas while US$2,6 million went to pharmaceuticals and chemicals.

The SMEs auction received 881 bids with 693 accepted and 188 were disqualified while the main auction received 623 bids, 420 accepted and 203 were disqualified.

Bids with overdue CD1s, outstanding Bills of Entry (BOEs) and those with sufficient FCA balances were disqualified while some bids were allotted on a pro-rata basis.

Zimbabwe introduced the foreign exchange auction market in June 2020 and the platform has played a part in availing foreign currency to formal businesses, thus providing a modicum of pricing stability among recipients of the funds allotted. –The Chronicle