Difference between revisions of "Foreign Exchange Auction System"

Line 54: Line 54:
  
 
==Auction Bids, Allotment and Average Rate==
 
==Auction Bids, Allotment and Average Rate==
 +
 +
===1 June 2021===
 +
The Zimbabwean dollar fell to ZWL$84.7653 against the US dollar from last weeks trading of ZWL$84.7259 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their forty-second and forty-eighth trading. Foreign exchange results released by the [[Reserve Bank of Zimbabwe]] (RBZ) showed that a total amount of US$5 939 711.40 down from US$6 335 601.02 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$90.00 up from ZWL$89.00 last week and the lowest allotted rate was US$1:ZWL82.00 unchanged from previous week, while a total of US$32 599 234.77 up from US$31 841 848.09 the previous week was allocated on the main exchange market at the highest rate of ZWL$89.00 unchanged from the previous week and a lowest allotted rate of ZWL$82.00 unchanged from last week.
 +
*The number of bids for SMEs went down and for the Main exchange were also down compared to the previous week's trading. Last week there were 441 and 354 bids respectively with those disqualified standing at 25 and 35 respectively, and this week the bids stood at 411 and 328 respectively with those disqualified standing at 31 and 38 respectively.
 +
*All of the 380 accepted bids amounting to US$5 939 711.40 were allocated funds in the SMEs Auction.
 +
*All of the 290 accepted bids amounting to US$32 599 234.77 were allocated funds in the Main Auction.
  
 
===26 May 2021===
 
===26 May 2021===

Revision as of 17:55, 1 June 2021

Foreign Currency

A Foreign Exchange Auction is a system when the central bank regularly sells a given amount of foreign exchange through a bidding process and buys foreign exchange in the intervening periods at the previous auction-determined rate. It is important to place the exchange auction in the context of the alternative exchange rate regimes that can be adopted to resolve an exchange crisis and to restore a cushion of international reserves.

Background

The Reserve Bank of Zimbabwe (RBZ) replaced the interbank market with weekly foreign exchange auctions which was operational from 23 June 2020 to determine the Zimbabwe dollar (ZWL) exchange rate with those in industry and commerce cautiously optimistic that the platform will enhance transparency and efficient distribution of foreign exchange.

The Tuesday auctions are to sell the foreign currency retained by exporters which must either be used or sold within 30 days at the discretion of the exporter or be subject to compulsory sale after 30 days. RBZ governor Dr John Mangudya said the auction system will operate on the Reuters Forex Trading platform, a real-time electronic trading system. The weekly auctions are designed to improve transparency and efficiency in trading of forex in Zimbabwe.[1]

Zimbabwe conducted its first foreign currency auction in years to boost transparency and efficiency in the forex market on 23 June 2020. The Reserve Bank of Zimbabwe (RBZ) had announced that it will discard the 1:25 fixed interbank exchange rate system, which had been in place since February 2020.

The central bank said that the auction system, to be held every Tuesday, was designed to give fair value of the local currency in relation to the U.S. dollar. At the auction system, the Zimbabwe dollar debuted at 57 against 1 U.S. dollar. The new official exchange rate, however, remains below the parallel market rate which is running at between 80 and 95 per U.S. dollar depending on the method of payment.

Results of the auction conducted by the RBZ showed that the highest rate to the greenback on offer was 100 Zimbabwe dollars while the lowest was 25.5 Zimbabwe dollars. Those who want to buy hard currency through the auction system would be expected to present one bid per auction ranging from 50,000 U.S. dollars to 500,000 U.S. dollars.[2]

Forex Auction - First Day Results

Funding of the Foreign Exchange Auction System

The foreign Exchange Auction System is funded from:

  • Offshore facilities arranged by the Reserve Bank of Zimbabwe
  • Foreign currency availed through surrender requirements, which are liquidated at the prevailing market rate, and export proceeds liquidations upon expiry of the 30-day retention period; and
  • Foreign currency exchanged by exporters and free funds holders through the banking system at the prevailing market rate.[3]

How the System Works

An exchange auction is any regime where the allocation of a given amount of foreign exchange is determined through a bidding process.

Typically, a country moves initially from a fixed rate regime with administrative controls to a transitional multiple rate system, with one lower fixed-rate market and one floating rate market. The unified auction regime can be modified as well to confer special treatment on certain categories of transactions, such as petroleum imports and public sector expenditures.

Exchange Rate Determination

Pricing

There are two basic systems for determining the exchange rate in a foreign exchange auction using sealed bids.

  • Under marginal pricing, the clearing rate, or the highest rate at which the bids fully exhaust the offered foreign exchange, is paid by all successful bidders who receive foreign exchange.
  • Under the Dutch auction, each successful bidder is charged what he or she bid. Under both systems, all purchases of foreign exchange up until the next auction are made at the marginal rate.

How the Dutch Auction System Work

During the auction each and every one of these companies taking part in the auction, potential buyers, enter their bids for the amount of foreign currency they want to purchase as well as the rate they are willing to pay. During the first auction on 23 June 2020 the rates started at $25.50 ZWL and went up to $100.00 ZWL. So, for example, Delta Corporation might send in a bid that says they want $100 000 and are willing to pay a rate of $100.00 for it.

Once all the bids are submitted, the allotted amount($10 million in this case) is then assigned to the bidders from the highest bids down, until all of the whole allotted batch of foreign currency is assigned. The Dutch Auction starts from the highest bid downwards. The final rate that each buyer pays really depends on the exact nature of the auction but in this case, it seems those who bid the highest amount got the foreign currency they asked for, then the next highest batch and so on.

So for example the auction starts at $100.00:

  • Several companies feel this is acceptable and gobble up $2 000 000 US in foreign currency
  • The system then reduces the rate to $80 and several companies gobble that up at the trough until they have had their fill and there is $5 000 000 left
  • The rate is reduced to $60 ZWL and so on and each time the rate is reduced more and more of the foreign currency is taken up
  • Until maybe there is $1000 left which is finally gobbled up at $25.50 ZWL

This is all hypothetical in terms of the amount but that is the gist of a Dutch Auction.

The stupidity of averages

From here a weighted average (mean) is then calculated and the RBZ got a rate of $57.36 ZWL as to 1 USD on 23 June 2020. The reality however is that different companies probably paid a different rate which can be far higher or far lower than this average rate. From the data provided bids ranged from $25.50 to $100.00. That is a massive gulf that is smoothed over by the average of $57.36. It means it’s possible one company paid an official rate that is $44 ZWL higher than the average. It is also possible another company paid as much as $36 below the average rate.

Anyone who has taken a basic statistics course will tell you why averages, especially means are stupid:

  • They hide extremes, in this case, $25.50 versus $100.00 are all hidden in a neat figure of $57.36
  • Often what you are not getting is not typical data with means you get things like 3.5 people. In this case, it’s doubtful anyone paid $57.36 for their forex. It would be surprising if anyone paid this exact rate.

That makes the rate useful but meaningless

The rate is useful as an indicator of foreign currency demand in the country and so on but do not expect companies to use it. It is not their cost of doing business and therefore it would be ridiculous to use it as such. Businesses, by convention only consider the real costs they have incurred otherwise their records become a work of fiction.[4]

Auction Bids, Allotment and Average Rate

1 June 2021

The Zimbabwean dollar fell to ZWL$84.7653 against the US dollar from last weeks trading of ZWL$84.7259 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their forty-second and forty-eighth trading. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$5 939 711.40 down from US$6 335 601.02 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$90.00 up from ZWL$89.00 last week and the lowest allotted rate was US$1:ZWL82.00 unchanged from previous week, while a total of US$32 599 234.77 up from US$31 841 848.09 the previous week was allocated on the main exchange market at the highest rate of ZWL$89.00 unchanged from the previous week and a lowest allotted rate of ZWL$82.00 unchanged from last week.

  • The number of bids for SMEs went down and for the Main exchange were also down compared to the previous week's trading. Last week there were 441 and 354 bids respectively with those disqualified standing at 25 and 35 respectively, and this week the bids stood at 411 and 328 respectively with those disqualified standing at 31 and 38 respectively.
  • All of the 380 accepted bids amounting to US$5 939 711.40 were allocated funds in the SMEs Auction.
  • All of the 290 accepted bids amounting to US$32 599 234.77 were allocated funds in the Main Auction.

26 May 2021

The Zimbabwean dollar fell to ZWL$84.7259 against the US dollar from last weeks trading of ZWL$84.6494 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their forty-first and forty-seventh trading. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$6 335 601.02 up from US$6 167 533.19 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$89.00 down from ZWL$90.00 last week and the lowest allotted rate was US$1:ZWL82.00 unchanged from previous week, while a total of US$31 841 848.09 down from US$36 360 964.93 the previous week was allocated on the main exchange market at the highest rate of ZWL$89.00 unchanged from the previous week and a lowest allotted rate of ZWL$82.00 unchanged from last week.

  • The number of bids for SMEs went down and for the Main exchange were also down compared to the previous week's trading. Last week there were 445 and 370 bids respectively with those disqualified standing at 44 and 40 respectively, and this week the bids stood at 441 and 354 respectively with those disqualified standing at 25 and 35 respectively.
  • All of the 416 accepted bids amounting to US$6 335 601.02 were allocated funds in the SMEs Auction.
  • All of the 319 accepted bids amounting to US$31 841 848.09 were allocated funds in the Main Auction.

18 May 2021

The Zimbabwean dollar fell to ZWL$84.6494 against the US dollar from last weeks trading of ZWL$84.6140 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their fortieth and forty-sixth trading. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$6 167 533.19 up from US$5 089 085.21 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$90.00 up from ZWL$88.50 last week and the lowest allotted rate was US$1:ZWL82.00 unchanged from previous week, while a total of US$36 360 964.93 down from US$36 536 482.42 the previous week was allocated on the main exchange market at the highest rate of ZWL$89.00 up from ZWL$88.00 in the previous week and a lowest allotted rate of ZWL$82.00 unchanged from last week.

  • The number of bids for SMEs went up and for the Main exchange were also up compared to the previous week's trading. Last week there were 382 and 362 bids respectively with those disqualified standing at 47 and 33 respectively, and this week the bids stood at 445 and 370 respectively with those disqualified standing at 44 and 40 respectively.
  • All of the 401 accepted bids amounting to US$6 167 533.19 were allocated funds in the SMEs Auction.
  • All of the 330 accepted bids amounting to US$36 360 964.93 were allocated funds in the Main Auction.

11 May 2021

The Zimbabwean dollar fell to ZWL$84.6140 against the US dollar from last weeks trading of ZWL$84.5282 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their thirty-ninth and forty-fifth trading. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$5 089 085.21 up from US$4 513 404.05 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$88.50 same as last week and the lowest allotted rate was US$1:ZWL82.00 unchanged from previous week, while a total of US$36 536 482.42 up from US$32 854 222.02 the previous week was allocated on the main exchange market at the highest rate of ZWL$88.00 up from ZWL$87.00 in the previous week and a lowest allotted rate of ZWL$82.00 unchanged from last week.

  • The number of bids for SMEs went up and for the Main exchange were also up compared to the previous week's trading. Last week there were 328 and 328 bids respectively with those disqualified standing at 30 and 47 respectively, and this week the bids stood at 382 and 362 respectively with those disqualified standing at 47 and 33 respectively.
  • All of the 335 accepted bids amounting to US$5 089 085.21 were allocated funds in the SMEs Auction.
  • All of the 329 accepted bids amounting to US$36 536 482.42 were allocated funds in the Main Auction.

4 May 2021

The Zimbabwean dollar fell to ZWL$84.5282 against the US dollar from last weeks trading of ZWL$84.5032 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their thirty-eighth and forty-fourth trading. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$4 513 404.05 up from US$4 385 395.92 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$88.50 up from last week's ZWL$88.00 and the lowest alloted rate was US$1:ZWL82.00 unchanged from previous week, while a total of US$32 854 222.02 up from US$31 387 680.99 the previous week was allocated on the main exchange market at the highest rate of ZWL$87.00 down from ZWL$87.30 in the previous week and a lowest allotted rate of ZWL$82.00 unchanged from last week.

  • The number of bids for SMEs went down and for the Main exchange were also down compared to the previous week's trading. Last week there were 352 and 335 bids respectively with those disqualified standing at 59 and 70 respectively, and this week the bids stood at 328 and 328 respectively with those disqualified standing at 30 and 47 respectively.
  • All of the 298 accepted bids amounting to US$4 513 404.05 were allocated funds in the SMEs Auction.
  • All of the 281 accepted bids amounting to US$32 854 222.02 were allocated funds in the Main Auction.

27 April 2021

The Zimbabwean dollar fell to ZWL$84.5032 against the US dollar from last weeks trading of ZWL$84.4826 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their thirty-seventh and forty-third trading. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$4 385 395.92 up from US$3 900 835.28 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$88.00 same as last week and the lowest alloted rate was US$1:ZWL82.00 unchanged from previous week, while a total of US$31 387 680.99 up from US$30 207 699.94 the previous week was allocated on the main exchange market at the highest rate of ZWL$87.30 down from ZWL$89.00 in the previous week and a lowest allotted rate of ZWL$82.00 unchanged from last week.

  • The number of bids for SMEs went up and for the Main exchange were up compared to the previous week's trading. Last week there were 310 and 332 bids respectively with those disqualified standing at 57 and 65 respectively, and this week the bids stood at 352 and 335 respectively with those disqualified standing at 59 and 70 respectively.
  • All of the 293 accepted bids amounting to US$4 385 395.92 were allocated funds in the SMEs Auction.
  • All of the 265 accepted bids amounting to US$31 387 680.99 were allocated funds in the Main Auction.

20 April 2021

The Zimbabwean dollar remained unchanged at ZWL$84.4826 against the US dollar from last weeks trading of ZWL$84.4827 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their thirty-sixth and forty-second trading. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$3 900 835.28 up from US$3 749 275.87 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$88.00 up from US$1:ZWL$87.50 last week and the lowest alloted rate was US$1:ZWL82.00 unchanged from previous week, while a total of US$30 207 699.94 up from US$29 174 807.16 the previous week was allocated on the main exchange market at the highest rate of ZWL$89.00 up from ZWL$87.00 in the previous week and a lowest allotted rate of ZWL$82.00 unchanged from last week.

  • The number of bids for SMEs went up and for the Main exchange were up compared to the previous week's trading. Last week there were 298 and 316 bids respectively with those disqualified standing at 41 and 49 respectively, and this week the bids stood at 310 and 332 respectively with those disqualified standing at 57 and 65 respectively.
  • All of the 253 accepted bids amounting to US$3 900 835.28 were allocated funds in the SMEs Auction.
  • All of the 267 accepted bids amounting to US$30 207 699.94 were allocated funds in the Main Auction.

13 April 2021

The Zimbabwean dollar fell to ZWL$84.4827 against the US dollar from last weeks trading of ZWL$84.3970 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their thirty-fifth and forty-first trading. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$3 749 275.87 up from US$2 059 745.29 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$87.50 same as last week and the lowest alloted rate was US$1:ZWL82 unchanged from previous week, while a total of US$29 174 807.16 up from US$23 191 023.66 the previous week was allocated on the main exchange market at the highest rate of ZWL$87.00 same as in the previous week and a lowest allotted rate of ZWL$82.00 unchanged from last week.

  • The number of bids for SMEs went up and for the Main exchange were up compared to the previous week's trading. Last week there were 171 and 226 bids respectively with those disqualified standing at 27 and 36 respectively, and this week the bids stood at 298 and 316 respectively with those disqualified standing at 41 and 49 respectively.
  • All of the 257 accepted bids amounting to US$3 749 275.87 were allocated funds in the SMEs Auction.
  • All of the 267 accepted bids amounting to US$29 174 807.16 were allocated funds in the Main Auction.

6 April 2021

The Zimbabwean dollar gained slightly to ZWL$84.3970 against the US dollar from last weeks trading of ZWL$84.4001 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their thirty-fourth and fortieth trading. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$2 059 745.29 down from US$3 583 457.16 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$87.50 same as last week and the lowest alloted rate was US$1:ZWL82 unchanged from previous week, while a total of US$23 191 023.66 down from US$32 185 461.06 the previous week was allocated on the main exchange market at the highest rate of ZWL$87.00 down from ZWL$87.50 the previous week and a lowest allotted rate of ZWL$82.00 unchanged from last week.

  • The number of bids for SMEs went up and for the Main exchange were up compared to the previous week's trading. Last week there were 300 and 344 bids respectively with those disqualified standing at 47 and 68 respectively, and this week the bids stood at 171 and 226 respectively with those disqualified standing at 27 and 36 respectively.
  • All of the 144 accepted bids amounting to US$2 059 745.29 were allocated funds in the SMEs Auction.
  • All of the 190 accepted bids amounting to US$23 191 023.66 were allocated funds in the Main Auction.

30 March 2021

The Zimbabwean dollar fell to ZWL$84.4001 against the US dollar from last weeks trading of ZWL$84.1197 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their thirty-third and thirty-ninth trading. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$3 583 457.16 up from US$3 076 458.88 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$87.50 up from ZWL$87.00 last week and the lowest alloted rate was US$1:ZWL82 unchanged from previous week, while a total of US$32 185 461.06 down from US$32 481 729.79 the previous week was allocated on the main exchange market at the highest rate of ZWL$87.50 up from ZWL$87.00 the previous week and a lowest allotted rate of ZWL$82.00 unchanged from last week.

  • The number of bids for SMEs went up and for the Main exchange were up compared to the previous week's trading. Last week there were 298 and 333 bids respectively with those disqualified standing at 75 and 49 respectively, and this week the bids stood at 300 and 344 respectively with those disqualified standing at 47 and 68 respectively.
  • All of the 253 accepted bids amounting to US$3 583 457.16 were allocated funds in the SMEs Auction.
  • All of the 276 accepted bids amounting to US$32 185 461.06 were allocated funds in the Main Auction.

23 March 2021

The Zimbabwean dollar fell to ZWL$84.1197 against the US dollar from last weeks trading of ZWL$83.9830 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their thirty-second and thirty-eighth trading. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$3 076 458.88 down from US$3 233 262.22 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$87.00 same as last week and the lowest alloted rate was US$1:ZWL82 unchanged from previous week, while a total of US$32 481 729.79 up from US$32 064 981.88 the previous week was allocated on the main exchange market at the highest rate of ZWL$87.00 unchanged from the previous week and a lowest allotted rate of ZWL$82.00 unchanged from last week.

  • The number of bids for SMEs went up and for the Main exchange were down compared to the previous week's trading. Last week there were 288 and 351 bids respectively with those disqualified standing at 59 and 59 respectively, and this week the bids stood at 298 and 333 respectively with those disqualified standing at 75 and 49 respectively.
  • All of the 223 accepted bids amounting to US$3 076 458.88 were allocated funds in the SMEs Auction.
  • All of the 284 accepted bids amounting to US$32 481 729.79 were allocated funds in the Main Auction.

16 March 2021

The Zimbabwean dollar fell to ZWL$83.9830 against the US dollar from last weeks trading of ZWL$83.9827 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their thirty-first and thirty-seventh trading. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$3 233 262.22 up from US$2 971 567.57 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$87.00 up from ZWL$86.00 last week and the lowest alloted rate was US$1:ZWL82 unchanged from previous week, while a total of US$32 064 981.88 down from US$34 171 927.42 the previous week was allocated on the main exchange market at the highest rate of ZWL$87.00 unchanged from the previous week and a lowest allotted rate of ZWL$82.00 unchanged from last week.

  • The number of bids for SMEs went up and for the Main exchange were down compared to the previous week's trading. Last week there were 241 and 371 bids respectively with those disqualified standing at 36 and 73 respectively, and this week the bids stood at 288 and 351 respectively with those disqualified standing at 59 and 59 respectively.
  • All of the 229 accepted bids amounting to US$3 233 262.22 were allocated funds in the SMEs Auction.
  • All of the 292 accepted bids amounting to US$32 064 981.88 were allocated funds in the Main Auction.

9 March 2021

The Zimbabwean dollar fell to ZWL$83.9827 against the US dollar from last weeks trading of ZWL$83.8891 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their thirtieth and thirty-sixth trading. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$2 971 567.57 down from US$3 106 385.22 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$86.00 same as last week and the lowest alloted rate was US$1:ZWL82 unchanged from previous week, while a total of US$34 171 927.42 up from US$32 001 222.04 the previous week was allocated on the main exchange market at the highest rate of ZWL$87.00 unchanged from the previous week and a lowest allotted rate of ZWL$82.00 unchanged from last week.

  • The number of bids for SMEs went down and for the Main exchange were up compared to the previous week's trading. Last week there were 279 and 365 bids respectively with those disqualified standing at 43 and 61 respectively, and this week the bids stood at 241 and 371 respectively with those disqualified standing at 36 and 73 respectively.
  • All of the 205 accepted bids amounting to US$2 971 567.57 were allocated funds in the SMEs Auction.
  • All of the 298 accepted bids amounting to US$34 171 927.42 were allocated funds in the Main Auction.

2 March 2021

The Zimbabwean dollar fell slightly to ZWL$83.8891 against the US dollar from last weeks trading of ZWL$83.8868 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their twenty-ninth and thirty-fifth trading. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$3 106 385.22 up from US$2 579 573.89 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$86.00 down from $88.00 last week and the lowest alloted rate was US$1:ZWL82 unchanged from previous week, while a total of US$32 001 222.04 down from US$34 615 283.93 the previous week was allocated on the main exchange market at the highest rate of ZWL$87.00 unchanged from the previous week and a lowest allotted rate of ZWL$82.00 unchanged from last week.

  • The number of bids for SMEs went up and for the Main exchange were also up compared to the previous week's trading. Last week there were 183 and 301 bids respectively with those disqualified standing at 23 and 34 respectively, and this week the bids stood at 279 and 365 respectively with those disqualified standing at 43 and 61 respectively.
  • All of the 236 accepted bids amounting to US$3 106 385.22 were allocated funds in the SMEs Auction.
  • All of the 304 accepted bids amounting to US$32 001 222.04 were allocated funds in the Main Auction.

23 February 2021

The Zimbabwean dollar fell to ZWL$83.8868 against the US dollar from last weeks trading of ZWL$83.7573 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their twenty-eighth and thirty-fourth trading. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$2 579 573.89 down from US$2 928 388.78 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$88.00 same as last week and the lowest alloted rate was US$1:ZWL82 unchanged from previous week, while a total of US$34 615 283.93 down from US$35 658 511.50 the previous week was allocated on the main exchange market at the highest rate of ZWL$87.00 down from ZWL$89.00 previous week and a lowest allotted rate of ZWL$82.00 unchanged from last week.

  • The number of bids for SMEs went down and for the Main exchange were also down compared to the previous week's trading. Last week there were 235 and 368 bids respectively with those disqualified standing at 19 and 44 respectively, and this week the bids stood at 183 and 301 respectively with those disqualified standing at 23 and 34 respectively.
  • All of the 160 accepted bids amounting to US$2 579 573.89 were allocated funds in the SMEs Auction.
  • All of the 267 accepted bids amounting to US$34 615 283.93 were allocated funds in the Main Auction.

16 February 2021

The Zimbabwean dollar fell to ZWL$83.7573 against the US dollar from last weeks trading of ZWL$83.3720 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their twenty-seventh and thirty-third trading. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$2 928 388.78 up from US$2 646 464.78 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$88.00 same as last week and the lowest alloted rate was US$1:ZWL82 unchanged from previous week, while a total of US$35 658 511.50 up from US$31 980 155.84 the previous week was allocated on the main exchange market at the highest rate of ZWL$89.00 up from ZWL$87.00 previous week and a lowest allotted rate of ZWL$82.00 unchanged from last week.

  • The number of bids for SMEs went up and for the Main exchange were also up compared to the previous week's trading. Last week there were 215 and 331 bids respectively with those disqualified standing at 18 and 28 respectively, and this week the bids stood at 235 and 368 respectively with those disqualified standing at 19 and 44 respectively.
  • All of the 216 accepted bids amounting to US$2 928 388.78 were allocated funds in the SMEs Auction.
  • All of the 324 accepted bids amounting to US$35 658 511.50 were allocated funds in the Main Auction.

9 February 2021

The Zimbabwean dollar gained slightly to ZWL$83.3720 against the US dollar from last weeks trading of ZWL$83.3725 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their twenty-sixth and thirty-second trading. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$2 646 464.78 up from US$2 615 771.59 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$88.00 down from last week's ZWL$89.00 and the lowest alloted rate was US$1:ZWL82 unchanged from previous week, while a total of US$31 980 155.84 down from US$33 704 856.36 the previous week was allocated on the main exchange market at the highest rate of ZWL$87.00 down from ZWL$89.00 previous week and a lowest allotted rate of ZWL$82.00 unchanged from last week.

  • The number of bids for SMEs went down and for the Main exchange were up compared to the previous week's trading. Last week there were 220 and 325 bids respectively with those disqualified standing at 23 and 46 respectively, and this week the bids stood at 215 and 331 respectively with those disqualified standing at 18 and 28 respectively.
  • Of the 197 accepted bids amounting to US$2 646 464.78 only 195 bids were allocated funds amounting to US$2 646 464.78 in the SMEs Auction.
  • Of the 303 accepted bids amounting to US$31 980 155.84 only 302 bids were allocated funds amounting to US$31 980 155.84 in the Main Auction.
9 February 2021 Forex Auction Results

2 February 2021

The Zimbabwean dollar fell to ZWL$83.3725 against the US dollar from last weeks trading of ZWL$82.6756 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their twenty-fifth and thirty-first trading. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$2 615 771.59 up from US$1 965 845.19 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$89.00 up from last week's ZWL$86.00 and the lowest rate accepted rate was US$1:ZWL82 unchanged from previous week, while a total of US$33 704 856.36 up from US$26 043 880.13 the previous week was allocated on the main exchange market at the highest rate of ZWL$89.00 up from ZWL$87.00 previous week and a lower accepted rate of ZWL$82.00 unchanged from last week.

  • The number of bids for SMEs went up and for the Main exchange were down compared to the previous week's trading. Last week there were 196 and 337 bids respectively with those disqualified standing at 6 and 27 respectively, and this week the bids stood at 220 and 325 respectively with those disqualified standing at 23 and 46 respectively.
  • Of the 197 accepted bids amounting to US$2 708 146.97 only 188 bids were allocated funds amounting to US$2 615 771.59 in the SMEs Auction.
  • Of the 279 accepted bids amounting to US$33 991 133.34 only 276 bids were allocated funds amounting to US$33 704 856.36 in the Main Auction.

26 January 2021

The Zimbabwean dollar fell to ZWL$82.6756 against the US dollar from last weeks trading of ZWL$82.0833 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their twenty-fourth and thirtieth trading. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$1 965 845.19 down from US$2 875 202.48 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$86.00 down from last week's ZWL$87.00 and the lowest rate accepted rate was US$1:ZWL82 up from US$1:ZWL$80.00 previous week, while a total of US$26 043 880.13 down from US$32 474 342.83 the previous week was allocated on the main exchange market at the highest rate of ZWL$87.00 up from ZWL$86.00 previous week and a lower accepted rate of ZWL$82.00 from ZWL$80 last week.

  • The number of bids for SMEs went down and for the Main exchange were up compared to the previous week's trading. Last week there were 228 and 289 bids respectively with those disqualified standing at 9 and 29 respectively, and this week the bids stood at 196 and 337 respectively with those disqualified standing at 6 and 27 respectively.
  • Of the 190 accepted bids amounting to US$2 628 381.01 only 142 bids were allocated funds amounting to US$1 965 845.19 in the SMEs Auction.
  • Of the 310 accepted bids amounting to US$37 116 065.12 only 223 bids were allocated funds amounting to US$26 043 880.13 in the Main Auction.

19 January 2021

The Zimbabwean dollar gained slightly to ZWL$82.0833 against the US dollar from last weeks trading of ZWL$82.0914 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their twenty-third and twenty-ninth trading. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$2 875 202.48 up from US$2 811 445.80 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$87.00 up from last week's ZWL$86.50 and the lowest rate was unchanged at US$1:ZWL$80.00, while a total of US$32 474 342.83 down from US$33 024 167.01 the previous week was allocated on the main exchange market at the highest rate of ZWL$86.00 which was unchanged from last week and a lower rate of ZWL$80.00 same as last week.

  • The number of bids for SMEs went up and for the Main exchange were also up compared to the previous week's trading. Last week there were 207 and 305 bids respectively with those disqualified standing at 11 and 32 respectively, and this week the bids stood at 228 and 289 respectively with those disqualified standing at 9 and 29 respectively.

12 January 2021

The Zimbabwean dollar slumped to ZWL$82.0914 against the US dollar from last trading date's rate on 21 December 2020 of ZWL$81.7866 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their first trading in 2021. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$2 811 445.80 up from US$1 673 639.08 on 21 December 2020 was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$86.50 up from ZWL$86.00 on 21 December 2020 and the lowest rate was unchanged at US$1:ZWL$80.00 as on 21 December 2020, while a total of US$33 024 167.01 up from US$27 909 106.11 on 21 December 2020 was allocated on the main exchange market at the highest rate of ZWL$86.00 same as previous trading on 21 December 2020 and a lower rate of ZWL$80.00 same as on 21 December 2020.

  • The number of bids for SMEs went up and for the Main exchange were also up compared to the previous trading on 21 December 2020. On 21 December 2020 there were 129 and 237 bids respectively with those disqualified standing at 9 and 10 respectively, and this week the bids stood at 207 and 305 respectively with those disqualified standing at 11 and 32 respectively.

21 December 2020

The Zimbabwean dollar slumped with a slight margin to ZWL$81.7866 against the US dollar from last week's ZWL$81.7368 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their twenty-first and twenty-seventh staging respectively. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$1 673 639.08 down from US$2 477 875.40 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$86.00 same as in the previous week and the lowest rate was unchanged at US$1:ZWL$80.00 as in last week, while a total of US$27 909 106.11 down from US$29 468 843.66 the previous week was allocated on the main exchange market at the highest rate of ZWL$86.00 same as previous week and a lower rate of ZWL$80.00 same as last week.

  • The number of bids for SMEs went down and for the Main exchange were also down compared to the previous week. Last week there were 207 and 278 bids respectively with those disqualified standing at 25 and 25 respectively, and this week the bids stood at 129 and 237 respectively with those disqualified standing at 9 and 10 respectively.

15 December 2020

The Zimbabwean dollar gained with a slight margin to ZWL$81.7368 against the US dollar from last week's ZWL$81.8572 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their twentieth and twenty-sixth staging respectively. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$2 477 875.40 down from US$2 551 643.23 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$86.00 same as in the previous week and the lowest rate was unchanged at US$1:ZWL$80.00 as in last week, while a total of US$29 468 843.66 up from US$27 722 832.57 the previous week was allocated on the main exchange market at the highest rate of ZWL$86.00 same as previous week and a lower rate of ZWL$80.00 same as last week.

  • The number of bids for SMEs went up and for the Main exchange were down compared to the previous week. Last week there were 202 and 265 bids respectively with those disqualified standing at 14 and 29 respectively, and this week the bids stood at 207 and 278 respectively with those disqualified standing at 25 and 25 respectively.

8 December 2020

The Zimbabwean dollar gained with a slight margin to ZWL$81.8572 against the US dollar from last week's ZWL$81.8765 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their nineteenth and twenty-fifth staging respectively. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$2 551 643.23 up from US$2 153 933.22 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$86.00 down from $87 the previous week and the lowest rate was unchanged at US$1:ZWL$80.00 as in last week, while a total of US$27 722 832.57 down from US$31 193 922.34 the previous week was allocated on the main exchange market at the highest rate of ZWL$86.00 down from $90.00 last week and a lower rate of ZWL$80.00 same as last week.

  • The number of bids for SMEs went up and for the Main exchange were down compared to the previous week. Last week there were 189 and 278 bids respectively with those disqualified standing at 23 and 34 respectively, and this week the bids stood at 202 and 265 respectively with those disqualified standing at 14 and 29 respectively.

1 December 2020

The Zimbabwean dollar slumped to ZWL$81.8765 against the US dollar from last week's ZWL$81.8151 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their eighteenth and twenty-fourth staging respectively. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$2 153 933.22 down from US$2 324 864.48 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$87.00 up from $86 the previous week and the lowest rate was unchanged at US$1:ZWL$80.00 as in last week, while a total of US$31 193 922.34 up from US$30 630 562.31 the previous week was allocated on the main exchange market at the highest rate of ZWL$90.00 up from $88.33 last week and a lower rate of ZWL$80.00 same as last week.

  • The number of bids for SMEs went up and for the Main exchange were down compared to the previous week. Last week there were 181 and 289 bids respectively with those disqualified standing at 15 and 21 respectively, and this week the bids stood at 189 and 278 respectively with those disqualified standing at 23 and 34 respectively.

24 November 2020

The Zimbabwean dollar slumped to ZWL$81.8151 against the US dollar from last week's ZWL$81.7102 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their seventeenth and twenty-third staging respectively. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$2 324 864.48 up from US$2 303 580.00 the previous week was allocated on the SMEs forex auction with the highest rate unchanged at US$1:ZWL$86.00 as in previous week and the lowest rate went up slightly to US$1:ZWL$80.00 form ZWL$79.00 last week, while a total of US$30 630 562.31 up from US$27 436 863.49 the previous week was allocated on the main exchange market at the highest rate of ZWL$88.33 down from $90.00 last week and a lower rate of ZWL$80.00 same as last week.

  • The number of bids for SMEs went down and for the Main exchange were also down compared to the previous week. Last week there were 192 and 294 bids respectively with those disqualified standing at 17 and 38 respectively, and this week the bids stood at 181 and 289 respectively with those disqualified standing at 15 and 21 respectively.

17 November 2020

The Zimbabwean dollar traded at ZWL$81.7102 against the US dollar from last week's ZWL$81.6741 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their sixteenth and twenty-second staging respectively. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$2 303 580.00 up from US$1 844 700.53 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$86.00 up from ZWL$85.00 the previous week and the lowest rate went down slightly to US$1:ZWL$79.00 form ZWL$80.00 last week, while a total of US$27 436 863.49 down from US$29 947 934.68 the previous week was allocated on the main exchange market at the highest rate of ZWL$90.00 up from $86.30 last week and a lower rate of ZWL$80.00 same as last week.

  • The number of bids for SMEs went up and for the Main exchange were also up compared to the previous week. Last week there were 152 and 268 bids respectively with those disqualified standing at 9 and 20 respectively, and this week the bids stood at 192 and 294 respectively with those disqualified standing at 17 and 38 respectively.

10 November 2020

The Zimbabwean dollar was unchanged at ZWL$81.6741 against the US dollar from last week's ZWL$81.6740 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their fifteenth and twenty-first staging respectively. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$1 844 700.53 up from US$1 777 373.04 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$85.00 down from ZWL$86.00 the previous week and the lowest rate went up slightly to US$1:ZWL$80.00 form ZWL$79.10 last week, while a total of US$29 947 934.68 up from US$26 517 763.38 the previous week was allocated on the main exchange market at the highest rate of ZWL$86.30 down from $90.00 last week and a lower rate of ZWL$80.00 same as last week.

  • The number of bids for SMEs went up and for the Main exchange were also up compared to the previous week. Last week there were 148 and 260 bids respectively with those disqualified standing at 9 and 26 respectively, and this week the bids stood at 152 and 268 respectively with those disqualified standing at 9 and 20 respectively.

3 November 2020

The Zimbabwean dollar had a slight slump at ZWL$81.6740 against the US dollar from last week's ZWL$81.3531 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their fourteenth and twentieth staging respectively. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$1 777 373.04 up from US$1 676 072.85 the previous week was allocated on the SMEs forex auction with the highest rate unchanged at US$1:ZWL$86.00 as in previous week and the lowest rate went down slightly to US$1:ZWL$79.10 form ZWL$79.90 last week, while a total of US$26 517 763.38 up from US$26 175 746.77 the previous week was allocated on the main exchange market at the highest rate of ZWL$90.00 up from $89.00 last week and a lower rate of ZWL$80.00 same as last week.

  • The number of bids for SMEs went up and for the Main exchange were down compared to the previous week. Last week there were 146 and 274 bids respectively with those disqualified standing at 18 and 36 respectively, and this week the bids stood at 148 and 260 respectively with those disqualified standing at 9 and 26 respectively.

27 October 2020

The Zimbabwean dollar had a slight slump at ZWL$81.3531 against the US dollar from last week's ZWL$81.3499 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their thirteenth and nineteenth staging respectively. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$1 676 072.85 down from US$1 740 633.79 the previous week was allocated on the SMEs forex auction with the highest rate unchanged at US$1:ZWL$86.00 as in previous week and the lowest rate went up slightly to US$1:ZWL$79.90 form ZWL$79.00 last week, while a total of US$26 175 746.77 down from US$27 057 595.85 the previous week was allocated on the main exchange market at the highest rate of ZWL$89.00 up from $87.10 last week and a lower rate of ZWL$80.00 up from ZWL$79.00 last week.

  • The number of bids for SMEs was unchanged and for the Main exchange were up compared to the previous week. Last week there were 146 and 238 bids respectively with those disqualified standing at 14 and 15 respectively, and this week the bids stood at 146 and 274 respectively with those disqualified standing at 18 and 36 respectively.

20 October 2020

The Zimbabwean dollar had a slight slump at ZWL$81.3499 against the US dollar from last week's ZWL$81.3458 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their twelfth and eighteenth staging respectively. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$1 740 633.79 down from US$1 828 623.41 the previous week was allocated on the SMEs forex auction with the highest rate unchanged at US$1:ZWL$86.00 as in previous week and the lowest rate unchanged at US$1:ZWL$79.00 as last week, while a total of US$27 057 595.85 down from US$27 396 490.94 the previous week was allocated on the main exchange market at the highest rate of ZWL$87.10 down from $88.07 last week and an unchanged lower rate of ZWL$79.00 as last week.

  • The number of bids for SMEs went down and for the Main exchange were down as well compared to the previous week. Last week there were 163 and 255 bids respectively with those disqualified standing at 10 and 26 respectively, and this week the bids stood at 146 and 238 respectively with those disqualified standing at 14 and 15 respectively.

13 October 2020

The Zimbabwean dollar was unchanged at ZWL$81.35 against the US dollar from last week's ZWL$81.35 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their eleventh and seventeenth staging respectively. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$1 828 623.41 up from US$1 436 197.21 the previous week was allocated on the SMEs forex auction with the highest rate unchanged at US$1:ZWL$86.00 as in previous week and the lowest rate unchanged at US$1:ZWL$79.00 as last week, while a total of US$27 396 490.94 up from US$24 691 329.32 the previous week was allocated on the main exchange market at the highest rate of ZWL$88.07 up from $87.00 last week and an unchanged lower rate of ZWL$79.00 as last week.

  • The number of bids for SMEs went up and for the Main exchange were up compared to the previous week. Last week there were 135 and 228 bids respectively with those disqualified standing at 21 and 35 respectively, and this week the bids stood at 163 and 255 respectively with those disqualified standing at 10 and 26 respectively.[5]

6 October 2020

The Zimbabwean dollar gains slightly at ZWL$81.35 against the US dollar from last week's ZWL$81.44 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their tenth and sixteenth staging respectively. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$1 436 197.21 down from US$1 441 116.28 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$86.00 same as in previous week and the lowest rate standing at US$1:ZWL$79.00 up from $78.00 last week, while a total of US$24 691 329.32 up from US$23 067 310.73 the previous week was allocated on the main exchange market at the highest rate of ZWL$87.00 up from $86.00 last week and a lower rate of ZWL$79.00 up from $76.00 last week.

  • The number of bids for SMEs went up and for the Main exchange were down compared to the previous week. Last week there were 129 and 233 bids respectively with those disqualified standing at 6 and 22 respectively, and this week the bids stood at 135 and 228 respectively with those disqualified standing at 21 and 35 respectively.

29 September 2020

The Zimbabwean dollar gains slightly at ZWL$81.44 against the US dollar from last week's ZWL$81.50 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their ninth and fifteenth staging respectively. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$1 441 116.28 up from US$1 224 857.29 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$86.00 same as in previous week and the lowest rate standing at US$1:ZWL$78.00 same as last week, while a total of US$23 067 310.73 down from US$30 414 189.63 the previous week was allocated on the main exchange market at the highest rate of ZWL$86.00 down from $86.70 last week and a lower rate of ZWL$78.00 same as last week.

  • The number of bids for SMEs went up and for the Main exchange were down compared to the previous week. Last week there were 117 and 301 bids respectively with those disqualified standing at 22 and 35 respectively, and this week the bids stood at 129 and 233 respectively with those disqualified standing at 6 and 22 respectively.

22 September 2020

The Zimbabwean dollar gains slightly at ZWL$81.50 against the US dollar from last week's ZWL$81.71 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their eighth and fourteenth staging respectively. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$1 224 857.29 up from US$1 145 006.39 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$86.00 slightly lower than in previous week and the lowest rate standing at US$1:ZWL$78.00 up from $75 last week, while a total of US$30 414 189.63 up from US$20 023 899.32 the previous week was allocated on the main exchange market at the highest rate of ZWL$86.70 down from $88 last week and a lower rate of ZWL$78.00 up from $75 last week.

  • The number of bids for SMEs went up and for the Main exchange were down compared to the previous week. Last week there were 96 and 174 bids respectively with those disqualified standing at 12 and 10 respectively, and this week the bids stood at 117 and 301 respectively with those disqualified standing at 22 and 35 respectively.

15 September 2020

The Zimbabwean dollar gains slightly at ZWL$81.71 against the US dollar from last week's ZWL$82.70 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their seventh and thirteenth staging respectively. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$1 145 006.39 up from US$876 674.44 the previous week was allocated on the SMEs forex auction with the highest rate at US$1:ZWL$86.50 slightly higher than in previous week and the lowest rate standing at US$1:ZWL$75.00, while a total of US$20 023 899.32 up from US$18 334 530.08 the previous week was allocated on the main exchange market at the highest rate of ZWL$88.00 and a lower rate of ZWL$75.00.

  • The number of bids for SMEs went up and for the Main exchange were down compared to the previous week. Last week there were 74 and 216 bids respectively with those disqualified standing at 15 and 31 respectively, and this week the bids stood at 96 and 174 respectively with those disqualified standing at 12 and 10 respectively.

8 September 2020

The Zimbabwean dollar gains slightly at ZWL$82.70 against the US dollar from last week's ZWL$83.32 following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their sixth and twelfth staging respectively. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$876 674.44 down from US$976 403.52 the previous week was allocated on the SMEs forex auction with the highest rate remaining at US$1:ZWL$86.00 as in previous week and the lowest rate standing at US$1:ZWL$73.00, while a total of US$18 334 530.08 up from US$15 039 656.10 the previous week was allocated on the main exchange market at the highest rate of ZWL$88 and a lower rate of ZWL$75.00.

  • The number of bids for SMEs went down and for the Main exchange were up compared to the previous week. Last week there were 75 and 154 bids respectively with those disqualified standing at 11 and 25 respectively, and this week the bids stood at 74 and 216 respectively with those disqualified standing at 15 and 31 respectively.

1 September 2020

The Zimbabwean dollar gains slightly at ZWL$83.32 against the US dollar following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their fifth and eleventh staging respectively. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$976 403.52 up from US$960 791.84 the previous week was allocated on the SMEs forex auction with the highest rate reaching US$1:ZWL$86 and the lowest rate standing at US$1:ZWL$76.50, while a total of US$ 15 039 656.10 up from US$14 064 871.90 the previous week was allocated on the main exchange market at the highest rate of ZWL$87.50 and a lower rate of ZWL$76.00.

  • The number of bids for SMEs went down and for the Main exchange were up compared to the previous week. Last week there were 85 and 139 bids respectively with those disqualified standing at 10 and 33 respectively, and this week the bids stood at 75 and 154 respectively with those disqualified standing at 11 and 25 respectively.

25 August 2020

The Zimbabwean dollar eased to ZWL$83.40 against the US dollar following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their fourth and tenth staging respectively. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$960 791.84 up from US$517 630.88 the previous week was allocated on the SMEs forex auction with the highest rate reaching US$1:ZWL$88 and the lowest rate standing at US$1:ZWL$75, while a total of US$ 14 064 871.90 up from US$13 679 558.32 the previous week was allocated on the main exchange market at the highest rate of ZWL$88 and a lower rate of ZWL$80.00.

18 August 2020

The Zimbabwean dollar eased to ZWL$82.92 against the US dollar following today’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their third and ninth staging respectively. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) showed that a total amount of US$517 630.88 down from US$789 866 the previous week was allocated on the SMEs forex auction with the highest rate reaching US$1:ZWL$85 and the lowest rate standing at US$1:ZWL$78, while a total of US$ 13 679 558.32 down from US$18 million the previous week was allocated on the main exchange market at the highest rate of ZWL$88.38 and a lower rate of ZWL$80.00.[6]

13 August 2020

The Zimbabwean dollar eased to 82.56 against the US dollar following Thursday’s separate foreign currency auction trading for both Small and Medium Enterprises (SMEs) and the main auction in their second and eighth staging respectively. Foreign exchange results released by the Reserve Bank of Zimbabwe (RBZ) on Thursday showed that a total amount of US$789 866 was allocated on the SMEs forex auction with the highest rate reaching US$1:ZWL$90 and the lowest rate standing at 1:80, while a total of US$18 million was allocated on the main exchange market at the highest rate of 90 and a lower rate of 77.[7]

Forex auction system transparency queried

Industry called on the Reserve Bank of Zimbabwe to improve its disclosure levels if the foreign currency auction trading system was to remain sustainable. While the auction system has been credited for bringing stability to the exchange rate and inflation, keeping the market in the dark in terms of how much foreign currency is available has meant importers have insufficient information to base their bids on.

The market was, however, working without this key information with importers blindly bidding. Fortunately, the RBZ was able to meet supplies, but only up to mid-November 2020 when reports started filtering through that successful bidders were not getting access to the foreign currency on time. At some point the backlog was as long as five weeks.

Market watchers interpreted this as a weakness in the auction system, which seemed to be offering more than it had at lower bids. Accepting lower bids, when there was insufficient foreign currency available makes the whole exchange rate stability fallacious, according to financial analyst Walter Mandeya. Mandeya said one of the reasons why exporters had not voluntarily participated on the auction system was because the central bank was guaranteeing bids at lower levels even at times when its coffers could not meet demand.

“We are always told that all successfully bids were allotted their requirements in line with the import priority list, but we also know the RBZ has often struggled to meet its obligations on time.

“For whatever reason, it speaks to a mismatch between demand and supply.

“The supplier is being dishonest,” Mandeya said.

Noting the danger to the sustainability of the auction system, the Confederation of Zimbabwe Industries has now called on the central bank to declare the quantity of foreign currency on offer at each given auction. In a communiqué to its members, the business representative body said the long delays in the settlement of auction bids may be a reflection that the auction is not fully reflecting the market laws of supply and demand or there are serious bottlenecks in the banking system.

CZI said it will undertake an online survey after each auction to track how long it is taking for members to get their bids settled “so that we can engage authorities with real data from members.”

“The auction system, should declare how much is on offer before the start of each auction, so that bidders are aware, and the highest bids should be allowed to win,” said CZI.

The Business Membership Organisation (BMO) added that there is need for transparency on how the foreign currency being generated (by the Government) is being utilised.

“The foreign currency collected by the Government through taxes and other fees must be availed to the auction at the same way that exporters are surrendering a portion of their earnings for the auction.

“There should be a surrender portion for treasury and other departments and agencies collecting forex revenue to ensure supply to the auction is sustained.”[8]



References

  1. Golden Sibanda, [1], The Herald, Published: 23 June, 2020, Accessed: 24 June, 2020
  2. [2], Xinhua Net, Published: 24 June, 2020, Accessed: 24 June, 2020
  3. [3], Reserve Bank of Zimbabwe, Published: 17 June, 2020, Accessed: 11 August, 2020
  4. [4], Zimpricecheck, Accessed: 11 August, 2020
  5. Reserve Bank of Zimbabwe, [5], RBZ, Published: 13 October, 2020, Accessed: 13 Otober, 2020
  6. RBZ, [6], Reserve Bank of Zimbabwe, Published: 18 August, 2020, Accessed: 18 August, 2020
  7. Raynold Mhotseka, [7], Equity Axis, Published: 14 August, 2020, Accessed: 14 August, 2020
  8. [8], Business Weekly, Published: 29 January, 2021, Accessed: 29 January, 2021