Zimbabwe: ZW$ in Third Time Recovery On RBZ Auction, Firms Up By 5,9 Percent

The ZW$ recovered for the third time on the Reserve Bank of Zimbabwe (RBZ) Foreign Exchange Auction this week, firming up by 5,9% against the greenback.

A trading update published by the central bank at the close of business Tuesday shows that the exchange rate reached US$1: ZW$5 395 up from the rate of US$1: ZW$5 739 recorded last week, achieving a 5,9% recovery.

This follows the recovery of 8,6% on the record last week on the official market and a further 10,2% recovery after a second Auction was held last week.

Market watchers have attributed the current trend to rapid depletion of ZW$ usable bank balances following the move by authorities to widen the usage of the local currency.

To this end, tax payments which were normally paid in US$ are now payable in the ZW$ over and above the requirement for all the government departments and agencies to charge their fees and levies exclusively in local currency.

Other measures include a commitment to fund 25% export surrender requirement, maintaining US$ cash withdrawal tax at 2%, adoption of all external loans by RBZ and increasing consumers' access to basic commodities - by lifting import restrictions on basic goods.

RBZ mops up ZW$246,5 million through Gold Backed Digital Tokens sales

ZW$ recovers for second time in a week, gains 10,2% on RBZ Wholesale Auction

ZW$ in first time gain on RBZ Auction, recovers by 8,6% against USD

The trading update also shows that on the Wholesale Auction platform - where large corporates normally buy US$, the number of bids received were 11, with a total value of bids accepted US$4,1 million.

However, the amount allotted for the platform was US$20 million which the platform could not entirely take up due to low ZW$ balances.

During the day, bidding rates reached a high of ZW$5 500 and a low of ZW$ 5 200.

On the Retail Auction platform, a total US$580 921, 00 was allotted with productivity related needs such as raw materials receiving US$205 209, Machinery and Equipment US$64 869, services US$183 004, Retail and Distribution US$127 837 among others.

Read the original article on New Zimbabwe.