HARARE – The Reserve Bank of Zimbabwe held its weekly foreign currency auction today, which saw the local currency break its depreciation trend against the US dollar albeit marginally, as it gained 0.01% to 82.0833 from 82.0914 at today’s auction.
Allotments at the recent auction amounted to US$35.4 million, which is lower than the US$35.8 million record achieved last auction. The main auction was allotted US$32.5 mln and the SMEs took US$2.9 mln. Raw Materials continued to be the biggest benefactor as they were allotted US$15.6 mln, Machinery and Equipment US$6.7 mln, Fuel, Gas and Electricity at US$3.6 mln. Consumables, Retail and Distribution, Pharmaceuticals and Chemicals and Services also received amounts above US$1 mln, with Paper and Packaging getting lower.
The lowest rate was at $80 and the highest rate at $87 was recorded in the SMEs auction. The difference between the highest and lowest bid has continued to widen as it moved to 8.75% from 8.13% as of the last auction. The average weighted rate is now 5.65% lower than the highest bid from 5.10% last auction due to the currency’s appreciation of the highest bid. Parallel market rate and average weighted rate difference remained at 28.62% as the auction rate remained virtually unchanged.
On the parallel market trades continue to happen but have begun to come far in-between than the rate at which they were at in the previous month. The Zipit buying rate has remained stuck at 110 in the past week as well as the selling price for traders which has gone down to 115 for large amounts. Mobile money rates were quoted at 103 for both One Money and Ecocash transactions. Cash rates were now quoted at 85 buy and 100 sell.
Cryptocurrencies are currently on a bull run as Ethereum reached its four year high in the session after it gained 12.17% to $1 407.45. Bitcoin was up 1.62% to $37 085.09 as it continues to recover back to above $40 000 level. Bitcoin Cash gained 4.54% to $528.31.
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