Is the Auction Market Rate eyeing ZWL100 resistance level by year end as RBZ tinkers with the FX supply?

Wed Oct 13 11:17:35 CAT 2021

 <mailto:info at bulls.co.zw> 

Dear Subscriber,

Please find herein the RBZ Foreign Currency Auction Market results &
Commentary for 12 October 2021. 

Auction Results 05 October 2021

Auction Results 28 September 2021

SME Auction

Main Auction

SME Auction

Main Auction

Value of Bids Accepted

9,365,574.40

32,826,554.76

10,695,839.38

35,798,776.22

Highest Rate Received

100.0000

95.1600

98.0000

96.0000

Lowest Bid  Rate Received

85.0000

85.0000

85.0000

85.0000

Lowest Bid Rate Allotted

88.5000

85.0000

85.0000

85.0000

Amount Allotted 

7,978,938.75

28,395,244.38

10,695,839.38

35,798,776.22

Total Number of Bids Received

1256

519

1217

466

Total Number of Bids Accepted

1196

488

1164

444

Number of Bids Allotted

759

357

Weighted Average Rate

90.0792

1.6941%

88.5532

Purpose

SME Auction

Allotments

Main Auction

Allotments

SME Auction

Allotments

Main Auction

Allotments

USD

USD

USD

USD

Raw Materials 

2,428,873.54

11,010,262.22

3,247,758.50

15,226,564.09

Machinery & Equipment 

2,482,427.55

7,822,826.32

3,595,447.33

8,272,309.33

Consumables  

1,215,781.53

3,010,781.10

1,431,730.56

3,597,274.31

Pharmaceuticals & Chemicals

608,013.90

980,656.00

799,181.28

1,759,691.19

Services 

666,473.29

3,286,166.59

997,704.92

3,573,549.89

Retail & Distribution 

19,910.71

0.00

29,354.10

129,343.11

Fuel, Electricity & Gas 

368,996.62

1,139,496.66

405,158.72

2,131,929.23

Paper & Packaging 

188,461.61

1,145,055.49

189,503.97

1,108,115.07

Total 

7,978,938.75

28,395,244.38

10,695,839.38

35,798,776.22

Grand Total Awarded

36,374,183.13

-21.77%

46,494,615.60

Harare- The Zimbabwe Dollar breached the ZWL90 mark to the US$ shedding 1.7%
in the process. Global allotted bids fell 22% to US$36.4m as the central
bank began implementing measures  promised in the engagements with industry
to allot only available foreign currency. The comes on the  increased
Government statements warning "economic saboteurs and exchange rate
manipulators" that the long arm of the law will catch with them which saw
some corporate directors being arrested and brought to courts.

On the other hand, industry has washed its hands on the pegging of prices to
an inflated alternative market rate on the basis that RBZ continues to put
pressure on the exchange rate through monetary expansion and unsustainable
Reserve Money quarterly growth target.

The premium of Alternative Market to Auction market is currently in the
94%-100% range.

The ZSE has continue to rally with ZWL1.21 trillion or US$6.7bn at
alternative market rate. Economic agents will be closely watching if the RBZ
will let the exchange rate track the alternative market and possibly reach
ZWL100 to the greenback by year end.

Invest Wisely!

Bulls n Bears 

Cellphone:        +27 71 5444 769

Alt. Email:         <mailto:info at bulls.co.zw> info at bulls.co.zw  

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