ZSE Outperforms FX Alternative market as ZWL weakens 22% on the Dutch Auction Market

[Bulls n Bears]

               <mailto:info at bulls.co.zw> 

 

 

Dear Subscriber,

 

Please find herein the RBZ Foreign Currency Auction Market results &
Commentary for 01 March 2022. 

 

	
Auction Results 23 March 2022

Auction Results 15 March 2022

	
US$

US$

US$

US$


 

SME Auction

Main Auction

SME Auction

Main Auction


Value of Bids Accepted

6,726,743.14

31,001,078.43

5,744,362.37

31,089,467.92


Total Number of Bids Received

1,102

450

1,177

478


Number of Bids Disqualified

91

37

72

36


Total Number of Bids Accepted

1,011

413

1,105

442


Number of Bids Allotted

977

399

1,105

433


Amount Allotted

6,625,160.56

30,182,270.46

5,744,362.37

30,862,194.32


Highest Rate Received

150.0000

150.0000

145.0000

148.0000


Lowest Bid Rate Received

				

Lowest Bid Rate Allotted

131.0000

134.0000

127.0000

130.0000

					

Weighted Average Rate

138.1979

2.9783%

134.0820

	

 

				

Purpose

SME Auction

Allotments

Main Auction

Allotments

SME Auction

Allotments

Main Auction

Allotments


 

USD

USD

USD

USD


Raw Materials 

1,530,260.33

12,202,419.26

1,388,421.01

13,859,233.34


Machinery & Equipment 

2,341,914.46

7,377,814.72

1,937,748.88

7,057,444.33


Consumables  

1,009,904.53

2,263,608.77

896,069.62

1,949,022.49


Pharmaceuticals & Chemicals

554,119.87

2,334,215.44

649,307.99

2,075,741.45


Services 

724,837.25

3,565,969.42

557,616.92

2,971,554.31


Retail & Distribution 

44,593.65

0.00

99,475.36

0.00


Fuel, Electricity & Gas 

278,587.70

1,410,974.56

135,024.71

1,946,033.16


Paper & Packaging 

140,942.87

1,027,268.29

80,607.88

1,003,165.23


Total 

6,625,160.66

30,182,270.46

5,744,272.37

30,862,194.31


 

				

Grand Total Awarded

36,807,431.12

0.55%

36,606,466.68

	
						
						

Harare- The Zimbabwe dollar has found itself 22% weaker on a YTD basis with
the premium with parallel market deteriorating from 68% in January to about
77%-80% as of 22 March. This is despite the continued upward trajectory in
FX receipts (exports, Remittances, etc).

 

However, at roughly 28% since the start of the year, the USD alternative
market has been outperformed by the ZSE. If one held US$, his nominal return
since January would be about 28% while the ZSE is up 44% another
illustration of the opportunity cost generated by Mattress Banking
Incorporated.

 

It appears efforts by the RBZ FIU will not yield much result for the Auction
Market as market players will respond to fundamentals and continue with
twinning arrangements.

 

The Ministry of Finance and the RBZ are now faced with a Houdini Act if they
are to rescue the ZWL as it faces an existential risk.

 

The efforts to save the ZWL have also been compromised by the exogenous
shocks emanating from the war in Ukraine which have pushed up price of fuel
and possibly soon enough global wheat prices and will have downstream knock
effects of an adverse nature

 

Invest Wisely!

 

Bulls n Bears 

 

Cellphone:        +27 71 5444 769

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

Website:           <http://www.bullszimbabwe.com> www.bullszimbabwe.com 

Blog:                 <http://www.bullszimbabwe.com/category/blogs/>
www.bullszimbabwe.com/category/blogs/ 

Twitter:            @bullsbears2010

LinkedIn:         Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe



 

 

 

 

 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220323/0c02d3af/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.png
Type: image/png
Size: 9458 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220323/0c02d3af/attachment-0001.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 94248 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220323/0c02d3af/attachment-0001.jpg>