Zimbabwe dollar drops to $1 404.80 to the US dollar but black market now at $2 950

The Zimbabwe dollar today fell by $192.26 against the United States dollar to average $1 404.8039 but this is way below the black market rate where the dollar is freely changing hands at $2 000 cash and the swipe rate has plunged to $2 950.

Offers at today’s auction ranged from $1 351 to $1 600 but the premium on the black market is still too high.

More than a thousand bids were accepted but less than 400 were allotted with 188 small and medium businesses getting money out of 554 bids that had been accepted and 209 large companies being allotted funds out of 483 that had been accepted.

A total of US$14.4 million was allotted.

Measures introduced by the government last week to shore up the local currency seem to have had no impact yet, though gold-backed digital coins mopped out nearly $14 billion last week.

Results of the second lot will be released on Thursday.

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