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Herald Reporter
From the point of view of buyers of foreign currency, the auctions run by the Reserve Bank of Zimbabwe and interbank market run by the banking system reached near perfect alignment yesterday being just $1,20, or 0,3 percent, apart.
The weighted average of bids on yesterday’s auction was $325,3314, while the “ask” price on the interbank market, what banks sell a US dollar for, was $324,1332. So whichever market an importer used to source currency, the price was almost identical.
While the midrate on the interbank market was $312,0164, there is no dealing between the willing buyers and willing sellers at that price. The banks were paying the willing sellers $299,8997 for each US dollar but were selling these to the willing buyers for $324,1332. The eight percent gap is to cover the expenses of the banks and give them a profit.
For the first time in four weeks all valid bids were allotted, and that was on both the main auction and the SME auction. The bid range on both auctions, the gap between the lowest allotted bid and the highest, is now narrowing and yesterday the bottom bid was $295 and the top bid was $350. This 18 percent is far closer to historic ranges, although still wider than average, but bidders are now coping better with their estimates. Bidders pay what they bid.
Of the almost US$25 million allotted the 274 main valid bidders shared almost US$20,7 million and the 753 valid SME bidders shared just under US$4,3 million.
Online Reporter