Forex Auction: Zimbabwe Dollar Continues To Weaken
Foreign currency auction on Tuesday shows that it is now trading at ZW$732 to US$1.
The Zimbabwe dollar has continued its freefall against the greenback, with results from the Reserve Bank of Zimbabwe (RBZ)’s foreign currency auction on Tuesday showing that it is trading at $732 to the United States dollar.
Following last week’s auction, the Zimdollar was trading at $705 to the US dollar.
In a statement, the central bank said a total of US$14,471,109 was allotted on Tuesday at the foreign currency auction, up from US$10,806,183 which was allotted last week. The bulk of the allotment went to raw materials procurement with US$7,938,975 followed by machinery and equipment at US$942,396. The total amount allotted for the Small to Medium Enterprises Forex Auction (SMEFX119/2023) was US$1,748,201.
On the parallel market, the Zimbabwean dollar is trading at $1,100 to the US dollar. Last month, the local currency was trading at $900 to the US dollar on the parallel market.
Zimbabwe’s consumer price inflation, however, slowed to 243,8% year-on-year in December 2022, down from the previous month’s 255,0% and it moved further away from August’s 18-month high of 285%.
