Harare, (New Ziana) – The Zimbabwe dollar slid 0.58 percent against the greenback to $83.40 at Tuesday’s weekly auction, the central bank has said.
This is the 10th consecutive week the local dollar has depreciated against the United States dollar since it was floated late June.
But in the past the past two weeks the rate of depreciation has massively slowed down as the local unit finds it true value.
Last week it traded at $82.92.
At Tuesday’s auction the highest rate on offer was $88 while the lowest accepted rate was $75.
At least US$15 million was allocated for bidders at both the main and the small to medium enterprises auction where a combined total of 224 bids were received out of which 43 were disqualified for various reasons.
“Bids, which were not eligible in terms of the priority list were disqualified,” the central bank said.
“Bids with overdue CD1s, outstanding Bills of Entry and those with sufficient foreign currency account balances were also disqualified.”
Raw materials, machinery and equipment, consumables, pharmaceuticals and chemicals, services such as loans and dividends, fuel, electricity and gas are major items on the priority list that got the bulk of the funds.