Zimbabwe dollar continues to weaken amid a cocktail of policy measures to support

[Bulls n Bears]

               <mailto:info at bulls.co.zw> 

 

 

Dear Subscriber,

 

Please find herein the RBZ Foreign Currency Auction Market results &
Commentary for 08 February 2022. 

 

	
Auction Results 08 February 2022

Auction Results 01 February 2022

	
US$

US$

US$

US$


 

SME Auction

Main Auction

SME Auction

Main Auction


Value of Bids Accepted

7,633,061.96

32,792,172.96

6,773,484.47

32,275,383.86


Total Number of Bids Received

898

536

901

546


Number of Bids Disqualified

100

85

118

86


Total Number of Bids Accepted

798

451

783

460


Number of Bids Allotted

798

410

783

460


Amount Allotted

7,633,061.96

30,198,858.89

6,773,484.47

32,275,383.86


Highest Rate Received

135.0000

130.0000

130.0000

132.5000


Lowest Bid Rate Received

		107.0000

108.0000


Lowest Bid Rate Allotted

115.0000

116.0000

107.0000

112.8200

					

Weighted Average Rate

118.8748

1.8715%

116.6500

100.0000%


 

				

Purpose

SME Auction

Allotments

Main Auction

Allotments

SME Auction

Allotments

Main Auction

Allotments


 

USD

USD

USD

USD


Raw Materials 

1,802,664.35

11,821,018.14

1,584,646.80

13,258,231.07


Machinery & Equipment 

2,264,729.79

7,901,825.18

2,147,777.51

7,024,692.98


Consumables  

876,554.00

3,562,165.30

961,908.64

2,750,638.64


Pharmaceuticals & Chemicals

916,491.54

1,661,438.04

1,053,903.16

1,922,356.55


Services 

568,363.12

3,280,283.01

554,044.11

3,491,211.10


Retail & Distribution 

20,620.00

0.00

10,000.00

	

Fuel, Electricity & Gas 

353,407.93

1,397,826.60

314,122.62

1,490,692.27


Paper & Packaging 

158,511.17

574,302.62

147,081.63

837,273.25


Total 

6,961,341.90

30,198,858.89

6,773,484.47

30,775,095.86


 

				

Grand Total Awarded

37,160,200.79

-1.03%

37,548,580.33

	
						
						

Harare- The Zimbabwe dollar weakened marginally by a further 1.87% to
ZWL118.8748 to the greenback as the fiscal and monetary authorities
announced a cocktail of measures including reducing quarterly Reserve Money
growth target from 10% to 7.5%.

 

On the alternative market, the ZWL moved to a mean of ZWL230. Retailers were
giving 50% discounts if one pays in US$ in a bid to attract US$ cash. This
gives an implied rate of ZWL175 on average for basic goods.

 

While the Government is attempting to de-dollarise, fundamentals are
pointing towards re-dollarisation especially as more and people and service
providers get remunerated in US$. 

 

The underwriting the ZWL by Government through allowing more taxes to be
paid in ZWL and increasing retention levels for exporting entities are key
in use of local currency but for now appear to be losing the battle as some
of the measures are usually left until it's too late.

 

However the elephant in the room is the ability of the Government to
maintain the spirit of the Dutch Auction System.

 

Zimbabwe has some of the highest inflows of US$s in the region outside of
South Africa but needs to sort out the allocation system so that the foreign
currency can move freely.

 

Meanwhile we await to see the impact of the revised civil service US$
package on retail demand for forex and alternative market exchange rate. 

 

Invest Wisely!

 

Bulls n Bears 

 

Cellphone:        +27 71 5444 769

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