Zimbabwe dollar now down to $546.83 to the US dollar

The Zimbabwe dollar today shed $25.48 to average $546.8254 to the United States dollar, narrowing the gap with the black market rate which is now between $800 and $850.

A total of US$15.3 million was allotted at today’s auction with US$2.6 million going to 278 small and medium businesses while the remainder went to 127 large companies.

Offers at the auction ranged from $520 to $605.

Measures introduced by the government which include the introduction of gold coins, the hiking of interest rates and the stoppage of payments to government suppliers pending value for money audits, have managed to shore up the local currency but some people argue that this is not sustainable.

But this is likely to depend on government action as the State is the biggest buyer of goods and services in the country, accounting for 70% of such purchases.

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