The Zimbabwe dollar (ZWL$) continues to lose value against the US dollar as indicated by the results of the Reserve Bank of Zimbabwe (RBZ) foreign currency (forex) auction conducted on Tuesday, 21 September 2021.
Last week the weighted average was US$1: ZWL$86.3010 and fell to US$1: ZWL$86.9267 this week.
This week, US$9.8 million was allocated to the Small to Medium Enterprises forex auction while US$29 million was allocated to the main forex auction.
In total, US$38.8 million was allotted this week, with the bulk of the allotment going to raw materials followed by machinery and equipment.
1082 bids were received on the Small to Medium enterprises forex auction, with 1023 accepted and 59 disqualified.
On the main forex auction, a total of 443 bids were received, 410 were accepted while 33 were disqualified.
The Reserve Bank of Zimbabwe (RBZ) said bids that were disqualified were not eligible in terms of the Priority List.
Bids with overdue CDIs, outstanding Bills of Entry (BOEs), and those with sufficient FCA balances were also disqualified.
Some bids were allotted on a pro-rata basis to conform with the Import Priority List, the RBZ said.
Below is the RBZ summary of the forex auction:
| Number of Bids Received : |
SME FX58/2021 1082 |
MAIN FX60/2021 443 |
| Number of Bids Disqualified : | 59 | 33 |
| Total Number of Bids Accepted : | 1023 | 410 |
| Total Number of Bids Allotted : | 1023 | 410 |
| Total Value of Bids Accepted : | USD 12 073 518.56 | USD 34 894 442.49 |
| Amount Allotted : | USD 9,779,692.35 | USD29,002,007.15 |
| Highest Rate Received : | 97.2000 | 95.0000 |
| Lowest Bid Rate Received : | 85.0000 | 85.0000 |
| Lowest Bid Rate Allotted : | 85.0000 | 85.0000 |
| Weighted Average Rate : | 86.9267 |
| PURPOSE | AMOUNT ALLOTTED SME AUCTION | AMOUNT ALLOTTED MAIN AUCTION |
| Raw Materials | 3,004,873.06 | 12,642,805.59 |
| Machinery and Equipment | 3,030,865.81 | 6,594,991.86 |
| Consumables (Incl. Spares, Tyres, Electricals, etc) | 1,492,637.16 | 2,632,044.47 |
| Services (Loans, Education, Dividends, Disinvestments, etc) | 599,110.94 | 1,204,631.57 |
| Retail and Distribution (Incl. Food, Beverages, etc) | 819,992.52 | 3,262,929.05 |
| Fuel, Electricity and Gas | 20,482.41 | 0.00 |
| Pharmaceuticals and Chemicals | 495,895.86 | 1,942,533.00 |
| Paper and Packaging | 315,834.59 | 722,071.61 |
| TOTAL | 9,779,692.35 | 29,002,007.15 |
| GRAND TOTAL AWARDED | 38,781,699.50 |
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