Highest Rate received on RBZ Dutch Auction FX market breaches psychological ZWL200 mark as RBZ gets tough on BDCs and FX market participants

Wed Apr 20 22:45:55 CAT 2022

 <mailto:info at bulls.co.zw> 

Dear Subscriber,

Please find herein the RBZ Foreign Currency Auction Market results &
Commentary for 20 April 2022. 

Auction Results 20 April 2022

Auction Results 12 April 2022

US$

US$

US$

US$

SME Auction

Main Auction

SME Auction

Main Auction

Value of Bids Accepted

4,227,846.44

26,068,380.08

3,702,817.86

28,340,493.17

Total Number of Bids Received

1,174

437

1,052

1,052

Number of Bids Disqualified

52

20

63

63

Total Number of Bids Accepted

1,122

417

989

989

Number of Bids Allotted

1,122

417

989

989

Amount Allotted

4,227,846.44

26,068,380.08

3,702,817.86

28,340,493.17

Highest Rate Received

200.0000

175.0000

160.0000

160.0000

Lowest Bid Rate Allotted

140.0000

145.8700

135.0000

142.0000

Weighted Average Rate

155.1419

3.18%

150.2157

100.00%

Purpose

SME Auction

Allotments

Main Auction

Allotments

SME Auction

Allotments

Main Auction

Allotments

USD

USD

USD

USD

Raw Materials 

1,028,490.67

12,432,100.95

999,034.76

12,472,455.22

Machinery & Equipment 

1,469,672.45

6,424,792.61

1,335,612.26

6,541,458.23

Consumables  

489,801.80

1,729,467.72

464,584.40

2,333,023.45

Pharmaceuticals & Chemicals

603,222.09

1,772,360.71

390,693.30

2,072,381.50

Services 

363,293.68

2,053,313.04

315,999.45

2,673,241.77

Retail & Distribution 

3,449.45

1009081.45

11,807.00

50000

Fuel, Electricity & Gas 

184,609.58

647,263.60

124,064.76

1,212,463.34

Paper & Packaging 

135,306.72

	61,021.93

985,469.66

Total 

4,277,846.44

26,068,380.08

3,702,817.86

28,340,493.17

Grand Total Awarded

30,346,226.52

-5.30%

32,043,311.03

Harare- The Zimbabwe dollar weakened further  to ZWL155.1419 against the
greenback, retreating by 3.18% today on the Dutch Auction market taking its
YTD depreciation on the official market to 38%. On the alternative market,
the local currency crashed to ZWL340-350 band, a 44% YTD depreciation taking
its premium to official market at 119%. 

The premium is now approaching dangerous levels as these are the same
trading zones that saw the last Auction during Dr Gono's era collapse.

The RBZ has moved to sanction select participants on the FX market who can
be inferred to have been dealing on the parallel market. Amongst those
suspended were Simbisa Brands' Inn Bucks money transfer product on grounds
on non registration and failure to regularise the demands from the
regulator. 

Also suspended were MetBank and Rolink from dealing with FX with the latter
being slapped with US$120,000 fine for its transgressions.

Whilst the authorities cannot sit by and watch, we have seen this movie
before and it has always ended in tears with the rate collapsing even
further.

The market yearns for a rate that's closer to the alternative market but
experience is that the RBZ at times loosens its grip but lacks courage to
left the Auction Rate close the gap on the parallel market rate.

The political economy always wins the rate destination.

Is the ZWL here to stay? Quite difficult to say with prices going through
the roof in recent days.

The jury is yet to be out as to the end game. For now authorities seem
intend on ensuring ZWL stays but do not appear to have respite on the
horizon.

  <mailto:bulls at bullszimbabwe.com> 

Invest Wisely!

Bulls n Bears 

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