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Zimdollar loses 6% against the dollar

by Staff reporter
28 Jul 2020 at 19:26hrs | Views
The local currency continues to lose value as it searches for a stable range based on demand and supply. The ZWL lost 6.01% to trade at 76.7596 against the dollar from 72.1470 attained last week.

A total of US$14.4m was apportioned at the recent auction after 173 bids were accepted from a total of 228 bids. Highest allotted bid was 82, with the lowest allotted being 75. The spread between bids continues to narrow as it moved to 12 from 27.17 the previous week after the lowest bid moved from 55 to 70 in the recent auction.
Despite the depreciation rate slowing down in the first three auctions, it seems to be gaining momentum once again in the last two editions, as it moved to 6.01% from 4.3% last week.   
Raw materials continued to receive the highest allocation after it got US$7.71m as the narrative moves towards production. Machinery and Equipment was the only other category to receive over a million US dollars after it was allocated US$3.04m. Retail and distribution, Consumables, Services were among other sectors to be allotted funds through the auction system today.

The interbank rate keeps closing in on the parallel market rate, despite the average mobile money rate moving to 95 on Friday from 93. It was the first movement in the rate in four weeks. The Zipit rate also lost 2% to trade at 115-120 band from the 110 it was trading at. It was the cash rate that moved the most in the week losing 8% from 75 to 81 against the dollar.

Source - finx