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OPINION April 13-18 2022 Weekly Digest 9

cess demand for the greenback in the
ZSE economy. On the parallel market, the
exchange rate has started to escalate
as demand surges.
Zimbabwe’s headline inflation stood
to gain at 72,70% as at March 2022, a 6,59%
increase from the prior month’s 66,11%
and an indication of an accelerated
momentum rate of price increases.
Notably, both headline and monthly
outturns fall outside national target
ranges of 25%-35% and below 3% (de-
despite slow spite decreases in month on month
inflation) respectively.
As such, despite a relatively slow
start start, the market will likely move north
of 250% for 2022, having registered a
311% increase in the ZSE ASI in 2021.
This is premised on the likelihood of
a sustained growth in money supply, a
continued weakening of the Zimdollar
EBEN MABUNDA and a slowdown in GDP growth, trig-
gering hedge seeking on the ZSE.

HE Zimbabwe Stock Ex-
change opened the month of Eben Mabunda is an analyst and
April, and a new quarter, on TV anchor at Equity Axis, a leading
a positive note after gaining financial research firm in Zimbabwe.
T 1,51% to close at a new record efforts by the Central Bank to tame money supply, an indication of ex- — ebenm@equityaxis.net
high of 16098.23 points.
This followed an unstable first
quarter, which was characterised by
intense uncertainty as market funda-
mentals remained shaky.
Aggregate turnover rose by 3% in KNOW YOUR NEW BANKNOTE
the March to ZW$8,188,877,299 (US$57
million), which is therefore the highest RESERVE BANK OF ZIMBABWE
record in the quarter.
Total turnover rose by 99% in Feb-
ruary due to a sharp growth in overall
stock prices. Year-to-date (as at April FEATURES OF YOUR NEW BANKNOTE
4) gains scaled up to 49,55%, while
on a month-to-date basis the bourse
closed at 2,06%. According to Tinashe
W Dumah, an Equities Analyst for Eq-
uity Axis:“The growth in turnover in
the month was highly skewed towards SEE THROUGH
market heavies as seen by a -23% de-
cline in volumes, which translates to
fewer shares trading at a higher price WATERMARK
as opposed to penny stocks which are
usually low-priced”. COLOUR CHANGING
In the first quarter of the year, for- HOLOGRAPHIC
eigners emerged net sellers with net SECURITY STRIP
sales coming in at ZW$322 million FEATURE FOR THE
(US$2,3 million) over the period. PARTIALLY SIGHTED
The recent sell-offs by foreign inves- HIDDEN IMAGE
FEATURE FOR THE
tors have been a factor of uncertainty PARTIALLY SIGHTED
ahead of the 2023 elections.
The bourse opened the year on a
continued upsurge that was stimulated
by rampant inflation from 2020-2021.
However, with the slow-down in in- SEE THROUGH
flation, stocks growth simultaneously
slowed down.
The current see-saw movement on
GOLD COLOURED
the bourse is therefore largely a price- WATERMARK IRIDESCENT BAND
correction trend.
On the other hand, an upside is still
imminent following a rapid deprecia-
tion of the local currency on both the
formal and informal currency markets.
With a market cap of ZW$2 trillion
(US$14 billion) on Tuesday the 5th of
April, the market is expected to have a
run for the rest of the year on the back
of weakening economic fundamentals.
The central bank took a dovish stance
on Monday April 4 raising interest rates
to 80% from the previous 60% to regis-
ter one of the highest interest rates in GET TO KNOW YOUR NEW BANKNOTE
the world, among other measures.
While this is meant to curb specu-
lative activities in the economy, this FEEL: LOOK: TILT:
impinges on the productive sectors,
threatening the country’s economic
growth prospects.
The RBZalso moved to further liber-
alisethe foreign exchange market by
allowing banks to make forex transac-
tions of up to US$1000 with entities.
The recent monetary policy pro-
nouncements will likely slow down the Banknotes have a Watermark: See-through: Feature for the Windowed Iridescent Band: The value numeral can
depreciation of the local currency in unique rough feel partially sighted: Security Strip: be seen in the feature
the interim. However, the local black which is different from When held against the Locate the shape Seven horizontal bars The strip changes Moving the note on the bottom left
around shows a shiny
light the Zimbabwe
above the watermark.
market is largely steered by transac- other printed materials bird and ‘RBZ’ can be Hold the note up to appear in the bottom from red to green with gold pattern on the when the note is tilted.
such as magazines or
tional movements that do not include computer print outs. seen. In reverse this the light. The shape right and left hand holographic element back of the note.
The stripe shows
completes with
will appear backwards.
nostro balances, often occurring be- the image on the corners. These have when tilted. When the denomination
a raised effect to help
held up to the light it
yond the formal system. back of the note to the partially sighted reads as a continuous of the banknote.
On the formal currency market, form the Zimbabwe recognise this banknote. line reading ‘100’ on
the ZWL sustained its trajectory and bird in a star. the front and ‘RBZ
100’ on the back.
magnitude at the close of the auction
trading for last week, on depreciating
by -3,06%, from -3,07% in the prior
week, to close at ZW$142,4237 per
US$1.
The exchange rate has been grow- For more information, please see www.rbz.co.zw | © Reserve Bank of Zimbabwe 2021
ing at an increasing pace despite the