So it means the Zimbabwe dollar has lost 4.5% of its value on the official market.
What transpired on the Auction
This week’s highest bid was ZWL$85 and the lowest bid was ZWL$40. As for last week, the highest bid was ZWL$90 and the lowest bid was ZLW$30.
Comparison with black market rate
Overall, the Zim dollar lost more value on the black market (6.86%) than on the official market (4.5%).
What does it all mean?
When the Reserve Bank of Zimbabwe introduced the Foreign Exchange Auction, it said it wanted to attain exchange rate stability.
Given that the Zimbabwe dollar is no longer losing value at an accelerated pace on the black market and the official market, it looks like exchange rate stability is no longer a wonderland.
However, some analysts argue that the Foreign Exchange Auction is not the one causing the decelerated decrease of Zimbabwe dollar’s value. Rather, its the suspension of mobile money transactions. They go on to argue that when the RBZ lifts the suspension, the Zimbabwe dollar’s value will tank dramatically.