For the third time on the trot, the Zimbabwean dollar (Zimdollar) has strengthened against the US dollar at the central bank controlled Foreign Currency Auction system.
The local currency traded at ZWL5396 to the green buck.
Apparently, about 11 bids were made and accepted to the tune of US$4 327,000.00, but only 10 were allotted.
Whilst the local currency registered a gain, according to market watchers, the monetary authorities have taken out local currency liquidity from the market so that there are few Zimdollars to buy the US Dollar, making the gain artificial.
The Reserve Bank of Zimbabwe is on record confirming that there is less Zimdollars on the market.
According to analysts, the Harare administration won’t let the local currency float freely because it will expose the lack of the required economic fundamentals.
Zwnews
