ZWL weakens faster on Auction than Interbank Market as parallel market rates start moving

Wed Jun 1 07:57:18 CAT 2022

 <http://www.netone.co.zw/> 

Dear Subscriber,

Please find herein the RBZ Foreign Currency Auction Market results &
Commentary for 31 May 2022. 

Auction Results 31 May 2022

Auction Results 24 May 2022

US$

US$

US$

US$

SME Auction

Main Auction

SME Auction

Main Auction

Value of Bids Accepted

5,135,841.87

23,947,063.37

8,684,002.68

32,941,798.21

Total Number of Bids Received

782

285

1,044

381

Number of Bids Disqualified

59

22

55

42

Total Number of Bids Accepted

723

263

989

339

Number of Bids Allotted

613

235

484

206

Amount Allotted

4,425,590.12

21,165,154.67

4,423,085.55

20,624,665.87

Highest Rate Received

340.0000

340.0000

330.0000

330.5200

Lowest Bid Rate Allotted

290.0000

290.0000

280.0000

280.0000

Weighted Average Rate

308.5201

5.72%

290.8876

Purpose

SME Auction

Allotments

Main Auction

Allotments

SME Auction

Allotments

Main Auction

Allotments

USD

USD

USD

USD

Raw Materials 

1,074,866.64

11,077,620.25

1,243,402.30

10,659,453.77

Machinery & Equipment 

1,678,233.12

3,597,642.53

1,686,880.11

5,004,038.83

Consumables  

583,152.38

1,817,428.66

450,609.88

1,268,902.14

Pharmaceuticals & Chemicals

376,205.05

1,647,857.01

301,132.00

971,701.72

Services 

388,571.00

1,439,602.03

338,643.96

1,255,573.02

Retail & Distribution 

16,187.13

0.00

9,469.56

0.00

Fuel, Electricity & Gas 

193,117.15

954,924.90

221,947.22

770,726.31

Paper & Packaging 

115,257.65

630,079.29

171,000.52

694,270.08

Total 

4,425,590.12

21,165,154.67

4,423,085.55

20,624,665.87

Grand Total Awarded

25,590,744.79

2.17%

25,047,751.42

Harare- The Zimbabwe dollar weakened to ZWL308.5201, a 5.72% depreciation
from last week and also weakening faster than the interbank market. This is
in line with expectations that the Auction Rate will converge to Interbank
Rate as monetary authorities move in to eliminate multiple exchange rates.
On the Alternative Market, the local unit weakened traded at ZWL450-480 as
inflation fears stoked the demand for US$ coupled with inadequate supplies
of FX on the formal market. The rates had stabilised following earlier
interventions by Government and Monetary Authorities to stem the rapid
depreciation.

Monthly inflation has also gathered pace with May 2022 Month on Month
inflation coming in at 20.97% and Year On Year at 131.74% reflecting the
rapid collapse of the ZWL in the months of April and May on both the Auction
and Interbank Market as prices soared and confidence waning.

The ZSE appears to be bottoming out with buyers back on the market as the
hedging drive resumes.

  <http://www.nedbank.co.zw/>  <mailto:bulls at bullszimbabwe.com> 

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