Zimbabwe: Zim Dollar Weakens to ZWL$ 64 Against U.S. Dollar

30 June 2020

The Zimbabwe dollar further weakened on the weekly foreign currency auction this afternoon to reach ZWL$ 63.744 against the USD in its second auction since Reserve Bank of Zimbabwe jettisoned the fixed exchange rate system.

The Zim dollar established its initial exchange rate under the new auction based system at ZWL$ 57 against the USD and continues to race against the parallel market which is now at ZWL$ 80.

Number of bids totaled US$ 18.957 million from US$ 11 million last week with foreign currency allotted to various companies reaching US$ 16.321 million.

The mount of allotted foreign currency represented a 60 percent increase from last week's US$ 10 million, a sign analysts has described as encouraging.

The Central bank introduced the Foreign Exchange Auction System to determine the Zimbabwe dollar exchange rate with focus on enhancing transparency and efficient distribution of scarce foreign currency.

The system works under the Reuters Foreign Exchange Trading platform, a real-time electronic trading system.

The weekly auctions will sell excess foreign currency from exporters that will not have been used after the 30 day retention period, offshore lines of credit arranged by the RBZ and surrender portion of export earnings.

RBZ

More From: 263Chat

Don't Miss

AllAfrica publishes around 800 reports a day from more than 130 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.