Zim Dollar firms against US Dollar

Story by Owen Mandovha

THE Zimbabwe Dollar continues with its impressive trading performance against the United States Dollar after the local currency gained by over five percent during Tuesday’s forex auction.

Government’s right mix of policies to arrest the runaway exchange rate madness have been totally entrenched and are yielding positive results through price and economic stability.

After the Reserve Bank of Zimbabwe Tuesday forex auction, the Zimbabwe dollar has gained by 5.57 percent from last week’s 4771.38 to 4505.42 this week against the greenback.

The impressive performance of the Zimbabwe Dollar attests to the increased demand of the local currency to settle fees and levies in line with Treasury’s recent policy’s measure to quote these in local currency, a move which has been widely celebrated by various economic stakeholders.

Further confirming that companies do not need to part ways with the Zimbabwe Dollar, the Reserve Bank of Zimbabwe offered US$20 million to be auctioned, while only bids valued at US$14,4 million were accepted with just US$7,9 million having been allotted.

Data available from the Reserve Bank of Zimbabwe show that since the 29th of June, the Zimbabwe Dollar has firmed an aggregate 28.2% to date and the run is expected to continue as the cocktail of measures jointly implemented by Treasury and the Reserve Bank of Zimbabwe are bearing fruit.

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