Zim dollar rally continues


Harare,(New Ziana) – The Zimbabwean dollar on Tuesday continued on its fourth straight rally against the greenback, closing the week at $81.50.

Last week it traded at $81.71.

The continued recovery has seen the local unit pullback from its lowest decline to $83.40 since it was floated in June.

The stabilisation of the exchange rate has largely resulted in market confidence, with major shops now pricing their goods using the official exchange rate.

But some are however still using the parallel market rate of between $95 and $105.

The Zimbabwe dollar was previously fixed at $25 to the US dollar leading to serious distortions in the market.

At Tuesday’s auction, the highest rate on offer was $86.7 while the lowest accepted rate was $78.

About US$31.6 million, the highest to date since introduction of the auction system, was allotted to a combined 361 bidders.

Foreign currency is allocated according to a set national priority list and about half the allotted amount was directed towards the purchase of raw materials for industry.
New Ziana

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