The Zimbabwe Dollar has lost more value compared to the United States Dollar in the official forex market on October 24, 2023. During the Reserve Bank of Zimbabwe’s wholesale foreign currency auction, the exchange rate averaged ZWL$5,693.7825 per US$1, which is lower than the rate of ZWL$5,668.2204 per US$1 on October 18.
On October 10, the rate was ZWL$5,633.8332 per US$1.
During the auction, a total of US$1,958,167.67 was allocated, an increase from the previous week’s allocation of US$1,937,178.64.
The allocations were primarily directed towards Raw Materials, receiving US$739,962.84, followed by Machinery and Equipment with US$442,614.68. Services such as Loans, Education, Dividends, and Disinvestments received the third-largest allocation of US$234,174.10.
The Zimbabwean economy is experiencing fluctuations, causing the Zimbabwe Dollar to lose value compared to other currencies. This poses challenges for the country in maintaining stability and managing inflation.
In response to these challenges, the Reserve Bank of Zimbabwe introduced a number of measures including the Zimbabwe Gold (ZiG) digital tokens. According to the central bank, ZiG serves as both a means of payment for domestic transactions and a store of value. The RBZ says since its introduction on October 5, 2023, ZiG has been widely accepted in the economy. Its use as a medium of exchange and a value-preserving instrument contributes to digitisation, financial inclusion, and the overall stability of the local currency. The auction rate does not yet show signs of stability of the Zimbabwean dollar though.