President gazettes multi – currency system into law President Mnangagwa has gazette Statutory Instrument 118A of 2022 entrenching the multi – currency system as announced by Finance and Economic Development Minister Professor Mthuli Ncube yesterday. The SI is titled Presidential Powers (Temporary Measures) (Amendment of Exchange Control Act) Regulation 2022. The measures will run for the duration of National Development Strategy 1 (January 2021 – December 2025). Among other measures, the regulations empower registered lenders, banks or any financial institution that lend foreign currency to receive repayment of the loan or credit in that foreign currency.
Stuttering Zim slashes growth targets Zimbabwe yesterday projected a lower growth than previously expected, a signal that the country was struggling to deal with the worst economic crisis of President Emmerson Mnangagwa’s five year reign. The Southern African country is once again in the throes of runaway inflation driven by exchange volatilities and galloping prices of goods and services. Yesterday, minister of Finance Mthuli Ncube said his earlier projection of a 5.5% gross domestic product growth for 2022 was unlikely. “We will announce that formal revision during the mid – term budget review on the 28th of July 2022 next month,” the Treasury boss said, as he laid out new measures to save the hemorrhaging economy. “Maybe suffice to say we will announce a slightly lower growth rate than the 5.5%.” The details, he said will be shared in the supplementary budget due in July. He spoke a day after new data showed annual inflation galloping to 191% this month, from 131% in May, in the aftermath of steep price hikes, which are now threatening to ground the economy. The downturn has been accompanied by production cuts in basics like bread, and frequent fuel price hikes, which has pushed industries to the brink and eroded consumer buying power. Zimbabwe is battling to forestall developments reminiscent of the first phase of the crisis during the decade to December 2008.
"The ZSE ASI retreated as selling pressure resumes"
The local exchange's resumes its losing trend pulled down by losses in the medium cap. The mainstream ASI lost 0.55% to close at 21,166.03, whilst The Top 10 index drifted higher up by 0.13%, The medium index shrank by 2.26, whilst the penny stocks gained 0.36%. The stock market saw an improvement on deal activity, as 6.1 million shares worth $778.14 exchanged hands. Innscor Zimbabwe, the conglomerate anchored top trades by value with 338 thousand shares exchanged hands for $147 million (19% of value). Other noteworthy trades were recorded in Ecocash Holdings as $129 million worth of shares exchanged hands. The financial giant CBZ continues on an upward trend soaring, gaining 13.99% as it led the stocks on the move. Edgars jumped 2.00% to close at $5.10, whilst Nampak gained 0.67% to close at $15.00
Meanwhile Meikles and African Sun retreated back dragging down the Medium Cap index shedding 13.98% and 12.68% respectively. The seed giant, Seedco lost 7.83% to close the session at $180.03 On the ETF market, the Datvest ETF continued falling as it lost a further 3.74% to close at $1.92, whilst the other ETF’s closed on a positive note as MCMS surged 1.73% (0.56 percentage points above Top 10 index), Miz gaining 1.27%.