Zimbabwe: RBZ Auction Bid Rates Remain Within Stable Margins

Reserve Bank of Zimbabwe (RBZ) foreign exchange auction bidding rates being offered by traders this week continued to navigate within stable margins as total allotments to industry reached US$37 million.

A trading update released at the close of business Tuesday showed that at the main auction platform, the highest bid rate offered was $87 whilst the lowest rate reached $82.

The rates at the Small to Medium Enterprises (SMEs) platform reached a high of $88 and a low of $82 in what market watchers have described as a signal indicating the possibility of long-term exchange rate stability.

The official exchange rate maintained the same premium reached last week of $83.88 against US$1, maintaining a close range with the parallel market rates.

Foreign currency is readily accessible at $100 against the greenback for both transfers and cash transactions.

A total 304 bids were received at the main auction platform with a total amount US$32 million being allotted.

Priority was directed towards productivity needs which saw raw materials receiving US$13.5 million, machinery and equipment US$5 million, consumables US$2.6 million, services US$2.6 million, retail and distribution US$2.6 million among other needs.

On the SME platform, a total 236 bids were received with a total US$3.1 million being allotted.

Raw materials were allotted US$761 350, machinery and equipment US$540 545, consumables US$676 256, services US$422 505, retail and distribution US$246 103, fuel US$215 829 and pharmaceuticals US$211 727 among other needs.

In a recent Monetary Policy Statement, the central bank committed to putting in place mechanisms aimed at mopping up excess liquidity and instilling discipline in a bid to achieve the broad benefits associated with exchange rate stability.

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