Zimbabwe dollar breaks the ZWL88 psychological benchmark on Auction Market as parallel market races ahead
Harare- The Zimbabwe Dollar continued on a losing streak shedding 1% versus the greenback on the auction market to break through the ZWL88 psychological benchmark. This is regardless of the increase in bids allotted to US$46.5m up 13% on prior week.
The USD firmed significantly on the parallel market with individual trades moving to ZWL160-ZWL170 band while the big volumes were in the ZWL170-ZWL180 to the US$.
This also comes on the back of the RBZ publishing the timelines to clear the Auction Market backlog which has been partly responsible for driving the parallel market rate as the companies awaiting disbursements had to resort to it to fund operations and raw materials imports.
The ZSE is now above ZWL1 trillion market cap or US$6bn at the alternative market rate as parallel market rate movement re-ignites inflation fears.
Please find herein the RBZ Foreign Currency Auction Market results & Commentary for 05 October 2021.
| Auction Results 05 October 2021 | Auction Results 28 September 2021 | ||||
| SME Auction | Main Auction | SME Auction | Main Auction | ||
| Value of Bids Accepted (USD) | 10,695,839.38 | 35,798,776.22 | 10,582,486.96 | 34,192,013.42 | |
| Highest Rate (ZWL) | 98.0000 | 96.0000 | 97.2000 | 95.0000 | |
| Lowest Rate (ZWL) | 85.0000 | 85.0000 | 85.0000 | 85.0000 | |
| 85.0000 | 85.0000 | 85.0000 | 85.0000 | ||
| Amount Allotted (USD) | 10,695,839.38 | 35,798,776.22 | 9,377,226.27 | 31,709,267.96 | |
| Number of Bids received | 1217 | 466 | 1236 | 450 | |
| Number of Bids rejected | 53 | 22 | 56 | 22 | |
| Weighted Average Rate (ZWL) | 88.5532 | 1.0027% | 87.6653 | ||
| Purpose | SME AuctionAllotments | Main AuctionAllotments | SME AuctionAllotments | Main AuctionAllotments | |
| USD | USD | USD | USD | ||
| Raw Materials | 3,247,758.50 | 15,226,564.09 | 2,953,286.28 | 12,919,239.28 | |
| Machinery & Equipment | 3,595,447.33 | 8,272,309.33 | 2,738,627.65 | 7,983,704.69 | |
| Consumables | 1,431,730.56 | 3,597,274.31 | 1,465,622.73 | 2,648,090.96 | |
| Pharmaceuticals & Chemicals | 799,181.28 | 1,759,691.19 | 584,600.46 | 1,471,247.99 | |
| Services | 997,704.92 | 3,573,549.89 | 961,374.21 | 3,535,845.96 | |
| Retail & Distribution | 29,354.10 | 129,343.11 | 0.00 | 0.00 | |
| Fuel, Electricity & Gas | 405,158.72 | 2,131,929.23 | 370,929.89 | 1,904,542.68 | |
| Paper & Packaging | 189,503.97 | 1,108,115.07 | 302,785.05 | 1,246,596.40 | |
| Total | 10,695,839.38 | 35,798,776.22 | 9,377,226.27 | 31,709,267.96 | |
| Grand Total Awarded | 46,494,615.60 | 13.16% | 41,086,494.23 | ||
