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How the Auction works
The auction system allows companies to bid for foreign currency every Tuesday and the winning bidder receives the forex after they pay the equivalent Zimbabwe dollars.
After the end of an auction sale every Tuesday, a weighted average will be calculated and the resultant figure will be the official exchange rate.
What is today’s the exchange rate
The inaugural auction exchange rate has established that the exchange rate is ZWL$57.35. Which means that US$1 is equal to $57.35 Zimbabwe dollars.
To put it into a civil servants’ and pensioners’ perspective, their US$75 allowances are worth ZWL$4301.25 and ZWL$1721 this week respectively.
Comparison with other markets
The new exchange rate is twice more than the interbank official exchange rate,which was US$1/ZWL$25, that the Reserve Bank of Zimbabwe had been using of late.
Still $57.35 is far below a minimum of $ZWL80 which is being offered on the black market on either EcoCash, OneMoney or ZIPIT. We will have to see next week on Tuesday if the auction exchange rate (official rate) gains on the black market exchange rate.
What do you think about this system to determine the exchange rate? Will the official exchange rate catch the black market exchange rate? Tell us in the comment section below