Zimbabwe dollar falls by 5 cents as forex auction closes for the year

The Zimbabwe dollar today fell by five cents against the United States dollar to average $81.7866 but the highest and lowest offers remained at $86 and $80 for the third auction in a row.

A total of US$29.6 million was disbursed today to 120 bids in the Small and Medium Enterprises auction and 227 in the main auction.

Only nine bids in the SME sector and 10 in the main were disqualified.

So far US$624.9 million has been disbursed through the auction since it started on 23 June.

The auction will be closed for the next two weeks and reopens on 12 January.

The Optional Market Implied Rate also rose to its highest level since the auction started and was pegged at $97.01 today.

This is viewed as a sign of investor confidence in the forex auction system.

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Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.