Zimbabwe dollar falls by $2.98 cents against the US dollar

The Zimbabwe dollar today eased by $2.98 cents against the United States dollar to average $108.6678 against last week’s $105.6896 with one more auction to go before closing for the year.

A total of 964 bids were allotted US$40.8 million with US$6.1 million going to small businesses and US$34.7 million to large companies.

More than 320 bids were disqualified.

The lowest offer was $100 and the highest $125.

The central bank’s Monetary Policy Committee said that the last auction for this year will be on 14 December and the first for 2022 on 11 January.

The Committee resolved to maintain the existing monetary policy stance as follows:

1. Maintaining the Bank policy rate at 60% and the Medium Term Bank Accommodation (MBA) Facility interest rate at 40%;
2. Maintaining statutory reserve requirements for demand/call deposits at 10% and at 2.5% for savings and times deposits;
3. Maintaining the minimum deposit rates for ZW$ savings and time deposits at 10% and 20%, respectively with a view to sustaining the appeal of the ZW$ as an investment currency; and
4. Maintaining reserve money growth targets at 10% for the fourth quarter of 2021 and the first and second quarters of 2022.

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