07/07: New official rate out, Zim dollar value down by 3.2%

Zimbabwe dollar US Dollar price

Today marks the third week since the Foreign Currency Auction was launched. And today the official exchange rate that was determined by the auction is ZWL$$ 65.87

This represents a 3.2% depreciation of Zimbabwe dollar’s value from last week’s official exchange rate. However, a 3.2% depreciation is an improvement from last week’s 11% depreciation.

Bids

This week’s highest bid was ZWL$90 and the lowest was bid was ZWL$ 30. At the end of the auction, all bids were summed up and the RBZ came up with the weighted average of ZWL$$ 65.87, which will be this week’s official exchange rate till next week Tuesday. Read this if you want to understand how the Auction works.

Comparison with the black market rate

The black market rate currently stands at ZWL$102 according to Zimpriceck.

Of civil servants allowances

Using the new official rate, civil servants’ US$75 allowance is now worth ZWL$4940.25. Pensioners’ US$30 allowance is now worth 1976.10 using the official exchange rate.

Actual value of US$75 and US$30

As a result of today’s new official exchange rate, civil servant’s US$75 allowance is actually worth US$48.43 on the black market and US$US30 allowance is actually worth US$19.37. Both increased in value from last week.

The rest of the week

Black market activity is still suppressed more than a week after the Reserve bank of Zimbabwe suspended many mobile money transactions.

The suspension was a real sucker punch to moneychangers who are moaning over their funds which they can’t withdraw from their mobile money wallets.

Anyway, the suspension of the transactions seems to have been a genius handiwork by the RBZ as the rate has been relatively stable on the Foreign Currency Auction market as well as on the black market.

It remains to be seen if the RBZ will keep this suspension in place. Surely, a mobile money system with no Agent and Bulk transactions is not sustainable. One way or the other, the central bank has got to remove the suspension and it will be game on with the black market.

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