The new interbank market FX auction system was launched earlier today and the results have now been released. The rate of US $ 1: ZW $ 25 is no longer and the new average rate determined by the market today was 1:57.
The amount available at auction today was $ 10.3 million and the highest bid was at a rate of 100, while the lowest was at 25.5 (either an initial bid or a government institution doing its best to keep the rate low). The weighted average rate was 57.3 which becomes the âofficialâ market rate until the next auction in a week.
The 10.345 million US dollars auctioned today has been distributed as follows;
|Raw materials||2 883 052.05|
|Machinery and equipment||2 407 666.89|
|Food and drinks||1,398,340.00|
|Services||1 308 996.12|
|Fuel, electricity and gas||263,147.46|
While the interbank FX auction sold US $ 10.3 million on day one, there was demand for US $ 11.4 million. This will be something to watch out for in the future as as long as the FX auction cannot meet the demand for forex which will continue to make the parallel market a necessity.
Missing information ?
When the RBZ announced that this system would go into effect last week, it made it clear that the information that would be shared would include total number of offers and rejected offers both are missing from the update given by the RBZ. I don’t know if this will be updated later, but it’s already a useless thing not to deliver.
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