Zim dollar further depreciates after second weekly auction

accreditation
(iStock)
(iStock)

After Tuesday's foreign currency auction, the Zimbabwe dollar has further depreciated to Z$63.74 to the US dollar from $57.36 last week.

This is the second day of the foreign currency auction following its introduction last week.

The auction is conducted every Tuesday with the exchange rate of the day being adopted until the next auction.

Zimbabwe has been struggling to stabilise its currency, which is now trading at approximately Z$100 to the greenback on the parallel market.

Meanwhile, the Reserve Bank of Zimbabwe's Monetary Policy Committee (MPC) has resolved to increase the bank's policy rate to 35% from the current 15%.

The increase is expected to help curb speculative borrowing, according to an MPC statement released on Tuesday.

In an effort to stabilise the exchange rate, the central bank is also expected to introduce principal exchange rate linked securities.

"In order to help the auction determined exchange rate, and preserve value for depositors and investors, the MPC resolved to introduce an exchange rate indexed Open Market Operations (OMO) instrument," according to the statement.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
17.96
-0.7%
Rand - Pound
19.94
-2.6%
Rand - Euro
17.60
-1.3%
Rand - Aus dollar
11.66
-0.2%
Rand - Yen
0.12
-0.4%
Gold
1,659.71
-0.0%
Silver
18.82
-0.4%
Palladium
2,201.50
+2.4%
Platinum
868.00
+0.2%
Brent Crude
89.32
+3.4%
Top 40
56,921
-0.9%
All Share
63,264
-0.9%
Resource 10
59,793
+3.2%
Industrial 25
76,769
-2.3%
Financial 15
13,707
-2.9%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders