Low USD demand keeps Zim dollar resurgence on tren...

Low USD demand keeps Zim dollar resurgence on trend

Zim Now Writer

The Zimbabwe dollar on Tuesday, 11 July gained against the US dollar on the Reserve Bank of Zimbabwe forex auction with a weighted average of $4 998.8352 with total bids taking up US$5 830 000 of the US$20 million on offer.

The highest bid rate was ZWL$5 353.7221 while the lowest bid rate was ZWL$4 900.0000.

Last week the local dollar was on a weighted average of $5 251.0640 and it has maintained it its upward momentum.

While the ZWL$ has continued to gain in the past few weeks, and a liquidity crunch has forced down black market rates as well, the market t is still leery of placing confidence in the trend and prices in shops remain at hyper inflationary rates.

The RBZ said all 10 bids worth was US$5 830 000 received from banks were accepted but only 8 bids were allotted to the tune of US$5 640 000.

Analysts have said the low bids at the official auction rate is due to the re-dollarisation of the economy as players are now getting their forex directly from the market.

Meanwhile, the RBZ awarded US$460,130.60 to the retail auction.

The central bank also said all bids for the retail auction within the pre-announced amount were allotted in full expect for those rejected because of overdue CDIs, outstanding Bills of Entry, insufficient ZWL$ and sufficient FCA balances.