The Zimbabwe dollar has lost 2.5 percent in today’s weekly auction against the US dollar which marks the 7 straight weeks of losses. However, today’s losses were the least in 7 weeks and almost half the 7-week average weekly loss.
Reserve Bank of Zimbabwe introduced the auction system eight weeks ago as a way to improve transparency in the economy. At today’s auction the local dollar settled at 82.56 from 80.47 last week. The dollar has been depreciating since the first auction and has not reached the stability the authorities hoped for when they introduced the much fancied Dutch auction system.
The positive side of the auction is that the depreciation rate of the currency has slowed down below 4 percent and the parallel market rate has not moved much since June 23.