The Zimbabwe dollar could be under pressure because the foreign currency auction system which is supposed to address foreign currency problems in the country only accounted for 22% of the foreign payments in the first quarter of this year.
The auction system is supposed to stabilise the local currency but 76% of the payments were from foreign currency accounts held by companies.
A total of US$1.8 billion was paid out in the first quarter but the auction only provided US$402.5 million while foreign currency accounts paid out US$1.4 billion. Only US$40.5 million was paid through the interbank market, translating to a paltry 2%.
The Zimbabwe dollar has been under siege of late and is now trading at between $300 and $345 to the United States on the parallel market while the auction rate is $155.14.