Zim dollar continues to firm against USD

By ZBC Reporter

The Zimbabwe dollar continued to firm against the US dollar after trading at 82.69 against the Greenback at the foreign exchange auction system which was characterised by an increase in forex inflows this Tuesday.

The foreign exchange auction system continues to gain momentum, with this Tuesday’s auction results showing a strengthening of the Zimbabwe dollar which gained 0.75% to 82,69 per one United States Dollar.

Of particular interest is the increasing amount of foreign currency allotted which rose from 16 million United States dollars last week to 19 million United States dollars this Tuesday.

Industrialist, Mr Mike Kamungeremu said the latest results show the growth in confidence in the system by economic players.

“The results simply indicate that the Zimbabwe dollar has finally reached its equilibrium hence you have realised that there no longer any swings.”

Zimbabwe National Chamber of Commerce (ZNCC) President, Dr Tinashe Manzungu noted that the auction is compelling exporters to account for all their overdue export proceeds, thereby unlocking more foreign currency inflows into the country.

A total of 216 bids were accepted up from last week’s 154 and the bid spread has remained largely the same from last week.

Last week, Finance and Economic Development Minister, Professor Mthuli Ncube said they are no longer creating unnecessary overdrafts at the Reserve Bank of Zimbabwe, a development which analysts say is helping to contain money supply growth to the benefit of the local currency.