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Wednesday, May 29, 2024

Local currency stability on track

Story by Stanley James, Business Editor

ECONOMIC stabilisation measures continue to yield intended results as the Zimbabwe Dollar marginally fluctuated against the United States Dollar on the Reserve Bank of Zimbabwe wholesale foreign currency auction this Wednesday.

Measures introduced by fiscal and monetary authorities since May this year are on track as evidenced by exchange rate stabilisation.

After Wednesday’s wholesale auction, the Zimbabwe dollar shed a few cents to ZW$4 577 from ZW$4 559 per one US Dollar last week.

A total of 16 bids were submitted to the financial entities with all of them being allotted a value of US$17 million from the US$20 million that was available on the auction market.

The latest results show that foreign currency allocations on the wholesale market have picked up, reflecting increased economic activities.

Monetary authorities state that the wholesale foreign currency auction has held over 12 trading sessions since its inception in June with banks submitting bids hovering at over 30 per cent of the amount on offer mainly due to tight liquidity conditions prevailing in the market.

The mid-term fiscal and monetary policy statements have reaffirmed the need to stay on course of stability with expectations that the Zimbabwe Dollar will continue to post gains.

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