Zimbabwe dollar plunges to $458.37 to the US dollar

In one of the biggest drops since 17 May the Zimbabwe dollar yesterday shed $42.08 to average $458.3653 to the United States dollar down from $416.2890.

The local currency had been dropping by an average of $13 every week following its plunge from $173.27 on 10 May to $258.54 on 17 May, the biggest drop for the year.

A total of US$19.3 million was allotted yesterday to less than 700 bids, 521 from the small and medium sector.

Offers ranged from $420 to $500 narrowing the gap with the black market rates which range from $700 to $950.

The swipe or Zipit rate of $950 has been stable since the introduction of the gold coin on 25 July. The coin is reported to have mopped out over $1 billion in excess liquidity last week after only 1 500 coins had been sold.

The Reserve Bank of Zimbabwe said 85% of the coins purchased so far were bought in local currency. It has released an additional 2000 coins.

The gold coin went on the market at US$1 823.80 and was pegged at US$1 868.74 today. It sold for $805 745.35 when it was launched and is selling for $892 518.37 today.

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