The Old Mutual Implied Rate went wild yesterday falling to $143.11against the United States dollar raising questions about how the Zimbabwe dollar will fare at today’s foreign currency auction.
The Zimbabwe dollar has been steady at $81.35 since 6 October but it has fallen marginally over the last two auctions though it remained at $81.35.
Today’s auction will be the 20th since trading started on 23 June.
Nearly US$377 million has been allotted through the two auctions- the main and the small and medium enterprises auctions- as of last week with the bulk of the money going to raw materials, machinery and equipment.
The OMIR is supposed to be based on the difference between the Old Mutual share price in London and that in Harare but Old Mutual has not been trading in Zimbabwe since June.
The Zimbabwe dollar usually firms against other currencies especially the South African rand during the festive period as thousands of people working in the diaspora return home for Christmas but this year could be different as travel is restricted because of the coronavirus.
Though the government said it would re-open borders on 1 December this is only for private and commercial vehicles.
Buses, the main mode of transport for most people, are still barred.
(90 VIEWS)
