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The second foreign currency auction has taken place today and it has established that the new official exchange rate is ZWL$63.74.
The highest rate which was bid on the foreign currency auction was ZWL$92 and the lowest bid was ZWL$37.82. Last week’s highest and lowest bid was ZWL$100 and ZWL$25.5 respectively.
The eventual weighted average of all of this week’s bids was found to be ZWL$63.74 which becomes this week’s exchange rate till next week on Tuesday when the next auction is held. Read this if you want to understand how the Auction works.
Civil servants perspective
With the new official exchange rate, civil servant’s US$30 translates to ZLW$4780 and pensioner’s US$30 translates to ZLW$1912.
Comparison Official rate with black market rate
There haven’t been reliable black market exchange rates ever since the Reserve Bank of Zimbabwe’s Financial Intelligence Unit threaten to take action against black market rate publishers. The black market exchange rates that are being reported by media outlets have been collected from just a few samples of traders.
According to Newsday, black market exchange rates stand at ZWL$105 as of the 29th of June. As a result, the official exchange rate is trailing the black market rate by ZWL$41.26.
If we use ZWL105, that means civil servants’ is ZLW$4780 (US$75) is actually US$45.52 on the black market. And pensioner’s ZLW$1912 (US$30) is actually US$18.21 on the black market.
What the rest of the week holds
Speculators are expecting the black market exchange rate to tumble this week because the central bank suspended mobile money Agent transactions are which are integral in the trading of foreign currency in the black market.
However, they don’t expect they expect the black market rate to find its upward trajectory soon as they bet that RBZ will lift the suspension soon since the suspended transactions are critical to the formal sector as well.