New forex allocation record at auction

Harare, (New Ziana) – The Reserve Bank of Zimbabwe on Tuesday set a new weekly foreign currency allotment record of US$38.6 million as the local unit slid marginally against the greenback to $83.76.

The previous foreign currency allocation high of US$35.84 million was set on January 12 when trading resumed for this year.

Last week, the Zimbabwean dollar traded at $83.37.

Data from Tuesday’s auction shows that a combined 603 bids were tendered at both the main and small enterprises auctions, with 63 having being disqualified.

The highest rate on offer was $89 while the lowest was 82, the central bank said.

As is the norm, the highest allocation of funds went towards importation of raw materials, followed by machinery and equipment.

While, the official rate continues to trail the black market by between $20 and $35 per US dollar, experts say the ability by companies to access foreign currency at cheaper rates continues to assist in price stabilisation.
New Ziana