The Zimbabwean dollar on Tuesday appreciated for the third straight week against the greenback, closing the week at $81.71.

Last week it traded at $82.70.

The lowest the local unit has traded against the United States dollar since it was floated in late June is $83.40.

It gained for the first time at the beginning of this month as the
exchange rate stabilised, with the market gaining confidence in the
foreign exchange auction system.

Previously, the exchange rate was fixed at $25 to the US dollar
leading to serious distortions in the market as the parallel market
was the main supplier of foreign currency to companies.

This saw the rate peaking at $120 on the parallel market before the
auction system was introduced.

The black market rate has since gone down to around $105.

At Tuesday’s auction, the highest rate on offer was $88 while the
lowest accepted rate was $75.

A total of US$21.17 million was allocated to a combined 248 bidders at both the main and the small to medium enterprises auction, with 22
bidders having been disqualified.

Foreign currency is allocated according to a set national priority list and more than half of the allotted amount was directed towards the purchase of raw materials for industry.