We are on our own!

Share on facebook
Share on google
Share on twitter
Share on linkedin

First things first; we promised to update you once the SI Instrument (85 of 2020) was published to confirm the return to multi-currency. It has since been published and boy were we right! Goodbye mono-currency and all the best to ZWL is what we can say for now.

Back to today’s business. Treasury has since published a statement on ‘Economic Mitigatory Measures to contain COVID-19.”

We have seen how other governments have responded to help resuscitate their struggling economies. Ours is such a big yawn. The statement is all over the place and lacks details. Only ZWL500m explicitly mentioned (USD20m at the fixed 1:25 rate). There is also a ZWL200m proposed monthly transfer. How much is that per individual? Even assuming a conservative 1m affected people, that’s like ZWL200/person/month. How much ZESA does it buy? Loaves of bread? The rest remains a wish list.

Companies and individuals expected more concise direction from Treasury. Tax breaks maybe? IMMT waiver? Corporate tax reduction? These are extraordinary circumstances. Money has been wantonly printed before for agriculture. This is a nationwide pandemic which needs all hands on the deck!

For now we are really on our own. This was a perfect opportunity for gvt to ramp up whatever resources, even through the printing press, to help companies keep afloat.

Share this post

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on pinterest
Share on print
Share on email

Recent Rates

Other Posts

About Us

We are a team of independent analysts whose primary focus is research into the Zimbabwean parallel markets as well as the stock market. We strive to bring you the most accurate rates in the market and our independence means we have no bias on these rates. You need to make your business decisions and we strive to be your best source of information.

Disclaimer

As Market Watch we do not deal in the parallel market nor do we quote on behalf of any other person or company. We are not traders and cannot be accountable for any decisions you make around our data. We are researchers only so please do not assume our information is accurate. Our information comes from various sources including social media as well as market informants on the street. For official USD and RTGS rates please consult your banking partner or the Reserve bank of Zimbabwe. Please note it is illegal to deal on the parallel market and we strongly advise against it. Our platform documents the rumoured parallel market that is mentioned on social media and various other sources.

The Lingo

OMIR

The ‘Old Mutual Implied Rate’ is a comparison between the Old Mutual share price on the London stock exchange / the Johannesburg stock exchange and the Zimbabwe stock exchange. Effectively RTGS is valued at 1:1 with the USD, but this difference in share price gives us the implied countries exchange rate.

RTGS

Real-time gross settlement systems (RTGS) is a funds transfer system where money transfer takes place from one bank to another on a “real time” basis and “gross” basis. Settlement in the “real time” means that the transaction happens almost immediately.

BOND

The Zimbabwe Bond Note is a surrogate currency issued by the Reserve Bank of Zimbabwe. This was originally issued against a loan facility from the African Export-Import Bank. The Bond Note is officially 1:1 however the market seems to have significantly discounted the value of the Bond Note.

ZAR

The symbol ZAR is the currency abbreviation for the South African rand.