USD on an onslaught against the ZWL as inflation goes haywire in April

[Bulls n Bears]

 <mailto:info at bulls.co.zw> 

 

 

Dear Subscriber,

 

Please find herein the RBZ Foreign Currency Auction Market results &
Commentary for 26 April 2022. 

 

	
Auction Results 26 April 2022

Auction Results 20 April 2022

	
US$

US$

US$

US$


 

SME Auction

Main Auction

SME Auction

Main Auction


Value of Bids Accepted

4,522,761.60

25,936,487.43

4,227,846.44

26,068,380.08


Total Number of Bids Received

920

428

1,174

437


Number of Bids Disqualified

51

36

52

20


Total Number of Bids Accepted

869

392

1,122

417


Number of Bids Allotted

869

392

1,122

417


Amount Allotted

4,522,761.60

25,936,487.43

4,227,846.44

26,068,380.08


Highest Rate Received

180.0000

180.0000

200.0000

175.0000


Lowest Bid Rate Allotted

145.0000

148.0000

140.0000

145.8700

					

Weighted Average Rate

159.3482

2.64%

155.1419

100.00%


 

				

Purpose

SME Auction

Allotments

Main Auction

Allotments

SME Auction

Allotments

Main Auction

Allotments


 

USD

USD

USD

USD


Raw Materials 

1,219,251.74

12,957,459.57

1,028,490.67

12,432,100.95


Machinery & Equipment 

1,527,835.83

5,419,206.84

1,469,672.45

6,424,792.61


Consumables  

534,565.97

1,867,234.18

489,801.80

1,729,467.72


Pharmaceuticals & Chemicals

478,934.09

1,322,872.33

603,222.09

1,772,360.71


Services 

416,713.86

2,151,740.28

363,293.68

2,053,313.04


Retail & Distribution 

9,847.44

100000

3,449.45

1009081.45


Fuel, Electricity & Gas 

193,164.92

1,262,149.08

184,609.58

647,263.60


Paper & Packaging 

142,447.75

855,825.15

135,306.72

	

Total 

4,522,761.60

25,936,487.43

4,277,846.44

26,068,380.08


 

				

Grand Total Awarded

30,459,249.03

0.37%

30,346,226.52

	
						
						

Harare- The Zimbabwe dollar weakened further  to ZWL159.3482 against the
greenback, retreating by 2.64% on the Dutch Auction market taking its YTD
depreciation on the official market to 41%. On the alternative market, the
local currency crashed to ZWL360-ZWL400 band, a 51% YTD depreciation taking
its premium to official market at 145%. 

 

Lack of confidence in the local currency has accelerated the collapse of the
currency. The Hard Boiled Egg Index calculated by Finx is now ZWL420. The
street rates for swipe are around ZWL360-ZWL400 while the supermarkets are
mainly converting at ZWL280. 

 

It remains unclear how the market would react if the RBZ were to devalue the
currency to ZWL as a reset for the Auction market or if it has the courage
to pursue the Dutch Auction in its true sense.

 

What is clear is that where the rate is headed is not healthy for those
earning ZWL.

 

Meanwhile, following from the currency collapse, April inflation rose sharp
sharply to 15.5% month on month and 96.4% y/y. Given the continued rise in
prices fuelled by rapid exchange rate depreciation, the May numbers are
likely to be even worse.

 

  <mailto:bulls at bullszimbabwe.com> 

 

Invest Wisely!

 

Bulls n Bears 

 

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