Prices stabilise as Zim dollar settles at $72.14 against the USD

By ZBC Reporter

THE Zimbabwe dollar is now pegged at $72.14 to the US dollar which also saw the volume of forex traded reaching US$14.85 million from last week’s US$15,99million.

The auction witnessed an increase in the number of companies wanting to buy foreign currency from 289 last week to 290.

The highest bid went down from 85 last week to 82 with the lowest bid standing at 55.

Raw material imports were allocated the largest chunk of forex traded to the tune of US$7,4million with machinery and equipment taking US$2.3million.

Retail and distribution took US$1.2 million, consumables taking US$1.1 million while pharmaceuticals and chemicals receivingUS$696 thousand and fuel and electricity taking US$640 thousand.

According to a statement from the Reserve Bank of Zimbabwe 51 bids were disqualified as they were not eligible in terms of the priority list and some with overdue CDIs, outstanding Bills of Entry and those with sufficient FCA balances.

Meanwhile, the government has been vindicated for suspending mobile money platforms which were driving parallel market rates, with a survey showing that the exchange rate and prices have since stabilised.

Forensic investigations by the Financial Intelligence Unit of the Reserve Bank of Zimbabwe unearthed wide-ranging malpractices by mobile money players who were allowing and using their platforms to conduct illegal foreign exchange activities.

The result was a runaway foreign currency rate which manifested in high inflation which caused suffering among ordinary Zimbabweans.

However, the decision by the government to intervene has paid off with prices and rates stabilising in sharp contrast to the prevailing situation before the corrective measures as highlighted by a dealer who has since ditched the illegal trade.

Confederation of Zimbabwe Retailers, President Denford Mutashu confirmed that the retail sector has witnessed price uniformity and stability in recent weeks.

“Besides prices stabilising and in some cases going down, retailers are now able to price goods and services with certainty and this has been witnessed since government took stern action against those abusing mobile money platforms.”

The latest development has brought relief and a sense of hope as government has since tightened the regulatory framework to halt any abuses.