The Zimbabwe dollar on Tuesday fell by nearly $700 to average $2 577.0564 against the United States (US) dollar on the foreign currency auction held by the Reserve Bank of Zimbabwe (RBZ).
On 30 May 2023, the weighted average was US$1: ZWL$2,577.0564, from US$1: ZWL$1,888.0119 on 23 May.
The depreciation of the Zimbabwe dollar at the last two auctions shows that the central bank is gradually allowing the local currency to float.
Yesterday, the RBZ allotted a total of US$15,266,095.92 up from US$14,166,812.38, with the majority of the allotment going to raw materials, followed by machinery and equipment.
The amount allotted for the Small to Medium Enterprises Forex Auction was US$1,782,414.85 up from US$957,712.91.
The Main Forex Auction was allotted US$13,483,681.07 up from US$13,209,099.47.
A total of 503 bids from small businesses and 344 for large firms were accepted.
However, only 174 bids from small businesses and 129 from large firms received allocations from the auction.
The auction will be disbursing less than US$5 million from next week.
The RBZ said bids with overdue CDIs, outstanding Bills of Entry (BOEs), insufficient ZWL and those with sufficient FCA balances were also disqualified.
Bids were allotted on a pure Dutch Auction system basis, in line with the Minister of Finance and Economic Development’s statement on refining the Auction System.
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