Zim dollar remains resolute against the greenback

By Davison Vandira

The Zimbabwe dollar retreated marginally from last week’s rate to 84.40 against the greenback at the Reserve Bank of Zimbabwe Auction this Tuesday.

A total of 35.7 Million United States dollars was disbursed towards meeting various economic needs of the country.
A massive 644 bids were received and 529 were allotted in full with16 being rejected for the Small and Medium platform as well as the main Auction.

The largest chunk of 16.3 million United States dollars was accounted for by raw materials which are essential in supporting production.

Machinery and Equipment got 6.2 million United States dollars, as they are also critical in the retooling exercise.
Consumables and other electrical accessories got 3.2 million United States dollars whilst services, loans and dividends received 2.4 million United States dollars.

Fuel, Electricity, Retail and Distribution got a combined 4 .2 Million United states dollars.

Meanwhile, the Central Bank’s recently reconstituted Monetary Policy Committee met for the first time on the 26th of this month and made the following resolutions:

~Maintenance of the conservative monetary targeting framework anchored on 22.5% Reserve money quarterly targets.

~Retaining the Bank Policy Rate and the Mid Term Bank Accommodation rates at 40% and 30% respectively.

~Releasing of an additional 2.5 billion Zimbabwe dollars to cater for winter wheat production

~ A cap of 10% on interest rates at which Banks lend the proceeds from the Medium Term Accommodation facility.