Zimbabwe dollar falls by 31 cents against the United States dollar

The Zimbabwe today fell by 31 cents against the United States dollar, one of the biggest drops in weeks, to average $85.0724 against last week’s $84.7653.

A total of 777 bids worth US$34.8 million, 432 from small enterprises, were approved today bringing the total of bids so far approved this month to 1 447.

According to the Reserve Bank of Zimbabwe, 3 450 companies, had benefitted from the foreign currency auction system from 23 June last year when it started to the end of May.

The central bank has published the list of all 3 450 companies and how much they were allocated.

The Zimbabwe dollar has so far dropped by $3.28 since the beginning of the year, a drastic improvement from last year when it fell by $24.43 between June and December. It fell by $26.04 within the first two months of the auction before the local currency stabilised.

Just over US$1.4 billion has been disbursed through the auction so far,about 24% of the foreign payments hat Zimbabwe is making.

The bulk, 67%, is through foreign currency accounts.

Zimbabwe is currently grappling with business to use the auction rate for pricing instead of the black market rate which is between $120 and $130 to the greenback.

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