The Reserve Bank of Zimbabwe (RBZ) on Tuesday conducted its second foreign currency auction as it aims to promote transparency and efficiency in the foreign currency market.
The latest auction results have confirmed that the local currency continues to lose value against the USD.
The central bank few weeks ago discarded its 1:25 fixed interbank exchange rate system to adopt an auction system.
The auction system kick started last week on Tuesday. The first auction system, the Zimbabwe dollar traded at 57 against 1 U.S. dollar.
Now it appears the local currency is losing value with each passing auction.
Yesterday’s results of the auction conducted by the RBZ showed that the highest rate to the greenback on offer was 92 Zimbabwe dollars while the lowest was 37.82, giving a weighted average rate of 63.74.
This week’s official rate has been pegged at 63.74.
The new official exchange rate, however, remains below the parallel market rate which is running at between 80 and 100 per U.S. dollar depending on the method of payment.