The Zimbabwe dollar (ZWL$) continues to lose value against the US dollar as indicated by the results of the Reserve Bank of Zimbabwe (RBZ) foreign currency (forex) auction conducted on Tuesday, 28 September 2021.
Last week the weighted average was US$1: ZWL$86.9267 and fell to US$1: ZWL$87.6653 this week.
This week, US$9.4 million was allocated to the Small to Medium Enterprises forex auction while US$32 million was allocated to the main forex auction.
In total, US$41.1 million was allotted this week, with the bulk of the allotment going to raw materials followed by machinery and equipment.
1236 bids were received on the Small to Medium enterprises forex auction, with 1180 accepted and 56 disqualified.
On the main forex auction, a total of 450 bids were received, 428 were accepted while 22 were disqualified.
The Reserve Bank of Zimbabwe (RBZ) said bids that were disqualified were not eligible in terms of the Priority List.
Bids with overdue CDIs, outstanding Bills of Entry (BOEs), and those with sufficient FCA balances were also disqualified.
Some bids were allotted on a pro-rata basis to conform with the Import Priority List, the RBZ said.
Below is the RBZ summary of the forex auction:
| Number of Bids Received : |
SME FX59/2021 1236 |
MAIN FX65/2021 450 |
| Number of Bids Disqualified : | 56 | 22 |
| Total Number of Bids Accepted : | 1180 | 428 |
| Total Number of Bids Allotted : | 1180 | 428 |
| Total Value of Bids Accepted : | USD10,582,486.96 | USD34,192,013.42 |
| Amount Allotted : | USD 9,377,226.27 | USD31,709,267.96 |
| Highest Rate Received : | 97.2000 | 95.0000 |
| Lowest Bid Rate Received : | 85.0000 | 85.0000 |
| Lowest Bid Rate Allotted : | 85.0000 | 85.0000 |
| Weighted Average Rate : | 87.6653 |
| PURPOSE | AMOUNT ALLOTTED SME AUCTION | AMOUNT ALLOTTED MAIN AUCTION |
| Raw Materials | 2,953,286.28 | 12,919,239.28 |
| Machinery and Equipment | 2,738,627.65 | 7,983,704.69 |
| Consumables (Incl. Spares, Tyres, Electricals, etc) | 1,465,622.73 | 2,648,090.96 |
| Services (Loans, Education, Dividends, Disinvestments, etc) | 584,600.46 | 1,471,247.99 |
| Retail and Distribution (Incl. Food, Beverages, etc) | 961,374.21 | 3,535,845.96 |
| Fuel, Electricity and Gas | – | – |
| Pharmaceuticals and Chemicals | 370,929.89 | 1,904,542.68 |
| Paper and Packaging | 302,785.05 | 1,246,596.40 |
| TOTAL | 9,377,226.27 | 31,709,267.96 |
| GRAND TOTAL AWARDED | 41,086,494.23 |
More: Pindula News; PRODUCED BY RBZ
Aaaaagh shame, man, the value of the Zim dollar fell by 70 cents! We could be in for a really rough ride because of that – fuel price will go up by USD$,80, bread will go up by 15%, inflation may rise by 60%. Oh, what a shame, poor Zimbabwe. I wonder what Mtuli Nube will have to say when he eventually comes back from the USA.