Chronicle Editor
Oliver Kazunga, Acting Business Editor
THE Foreign Currency Auction Trading System resumed activity yesterday after the festive season break with the Zimbabwe dollar maintaining stability despite marginally weakening by 0,44 percent from an exchange rate of 81,73 against the US$ before the break.
According to the first post-festive season forex auction conducted on Tuesday, the Zimbabwe dollar traded at 82,09.
The Reserve Bank of Zimbabwe (RBZ) closed forex auctioning on December 21 as participants on the platform had shut down for the festive season.
In a trading update released by RBZ after the Small to Medium Enterprises and the main foreign currency auction sessions yesterday, total bids of US$33 million were on the main market with US$2,8 million on the SMEs auction.
The SMEs auction had 196 bids accepted while 11 were disqualified.
At the foreign currency main auction 273 bids were accepted while 32 were rejected.
Prior to the festive season break, foreign currency allocation at the auction system averaged US$29 million.
Allotments from the two auction systems were largely for raw materials, machinery, retail and distribution, services, fuel, electricity and gas as well as paper and packaging among others.
Economic commentators have anticipated that the exchange rate will have less pressure as demand for forex is traditionally low during this time of the year.
The weekly forex auction system was introduced at the end of June last year replacing the fixed exchange rate. – @okazunga
Bunjiwe Mkwananzi