USD Closes Month At ZW$72 On RBZ Forex Auction System

THE Reserve Bank of Zimbabwe (RBZ) Foreign Exchange Auction System closed its fourth week of trading at an average rate of ZW$72 for every US$1 today Tuesday 21 July 2020.

Last week the United States dollar was sold at ZW68. The amount allotted at this week’s trading was USD14, 7 million with the highest rate bid at ZW$82 per USD1 and the lowest at ZW$55.

On the parallel market, the United States dollar is trading at ZW$90 for RTGS$ for Ecocash/OneWallet, while the Zipit rate ranges between ZW94-97 and ZW$60 for bond notes.

RBZ Governor Dr John Mangudya told The Herald newspaper that monetary authorities were happy with way the new forex auctions, to be held weekly on Tuesdays, had turned out describing the first as “super transparent”.

Among key objectives monetary authorities are seeking to achieve, he said, were restoring confidence in the forex market, stabilising the Zimbabwe dollar, stimulating production for self-sufficiency and stabilising prices.

Speaking with Zimbabwe Independent newspaper Confederation of Zimbabwe Industries president Mr Henry Ruzvidzo said: “The auction system must be complemented by supportive fiscal measures that ensure money supply remains in check and market operations are not tempered with to solve other evolving issues. Whilst stability of the exchange rate is a function of many other factors in the economy, the auction system will be a barometer that should trigger action to deal with challenges as they arise in the economy.”

He said the recently unveiled foreign currency auction system, which is one of many measures that the central bank has deployed in recent times to contain Zimbabwe’s currency volatility crisis required the “good faith” of all stakeholders to yield the expected results.

“The auction system allows for discovery of a market exchange rate and in addition is a platform for businesses to access foreign currency through formal channels,” Ruzvidzo said. “While safeguards to ensure efficient operation of the auction have been put in place, its success will depend on the extent of good faith from all stakeholders.”

Kuda is a seasoned journalist & writer with a special focus on current business, tech, health as well as entertainment news.

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