Zimbabwe dollar appreciate against the US dollar for the first since forex auction started

The Zimbabwe dollar today appreciated marginally against the United States dollar for the first time since the foreign exchange auction began on 23 June.

It went up by just 8 cents to average $83.32 against last week’s $83.40.

Today’s auction was the 11^th.

All bids were met in full with the main auction getting US$15 million and the small and medium enterprises auction US$976 403.52.

More than half the money went to raw materials, machinery and equipment.

The highest rate offered today was $87.50 and the lowest $76.

Eleven out of 75 bids were rejected in the SME auction and 25 out of 154 in the main auction.

Meanwhile the national news agency, New Ziana, today reported that money changers were finding the going tough following the ban on mobile money agent lines and the introduction of daily transaction limits.

The Reserve of Zimbabwe recently banned mobile money agent lines as well as set $5 000 as the cap for daily transactions for individuals.

The central bank also introduced a policy that limits mobile wallet users to only one account individual.

Agent lines were being used across the country to cash-in and cash-out as well as for sales transactions.

The RBZ suspected that some of the lines were being used to fuel the black market causing a spike in foreign currency rates.

Government in June this year ordered the suspension of mobile transactions to allow for investigations in the parallel market.

“Agent wallets are no longer serving any legitimate purpose and were now being used primarily for illegal foreign exchange transactions. Agents’ mobile money wallets are therefore abolished, with immediate effect,” the RBZ said recently in its Mid-term monetary policy statement.

When Ecocash was first introduced agent lines were used for cash-in purposes at a low level.

However some unscrupulous individuals took advantage of cash shortages that the country is facing to fleece members of the public, charging almost 100 percent to cash out.

The RBZ said agents who currently had funds in their accounts would transfer them into their bank accounts after providing sources of the money.

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