By ETimes

The Reserve Bank of Zimbabwe (RBZ) says it is in the process of clearing the ring-fenced backlog after receiving the funds from the Treasury.

This follows previous communication that the government would be providing funds to clear the ring-fenced backlog of foreign exchange auction allotments.

“This will go a long way in restoring confidence in the Foreign Exchange Auction System as well as stabilising the foreign exchange market,” said RBZ governor John Mangudya.

“The Bank continues to urge foreign auction participants and banks to observe and uphold principles of good corporate governance and self-discipline to ensure high standards of business ethics and transparency for the stability of the economy in the short to medium term.”

Backlogs in foreign currency settlement on the auction system have resulted in the spiraling of parallel market premium as importers seek quick access to foreign currency on the alternative market.

The local currency is expected to remain under pressure on the parallel market on the back of the unresolved foreign currency backlog on the auction market and growth in money supply, according to Old Mutual Investment Group.

stocks performance

Meanwhile the stock market closed lower on Tuesday, with the benchmark All Share Index down 0.37% to 12,330.22 points.

On the heavyweights, beverage maker Delta lost 5.93% to ZWL$181.5563. Conglomerate Innscor fell 2.71% to ZWL$190.7123. Retailer OK Zimbabwe was 2.06% to ZWL$29.3227.

As a result the Top 10 Index lost 0.52% to 7,996.85 points.

Conversely, the banking counter was the best performer with a 13.45% gain to close a ZWL$110.0000. Fintech giant Cassava was up 4.36% to ZWL$52.4935.

Advertisement

The Medium Cap Index gained 0.02% to 21,784.07 points. Microfinance Bank GetBucks, which strategically looks to increase its portfolio of foreign currency generating business, added 8.89% to ZWL$8.1667. ZB was 2.67% higher to ZWL$77.0000. The banking counter did not declare a third quarter dividend. However it expects to meet its performance targets for FY21 based on current performance trends.

Albeit an 86% reduction in Foreign Exchange income, total income for Q3FY21 at ZWL$5.9 billion increased slightly by 1% compared to ZWL$5.8 billion posted in Q3FY20.

Seedco Ltd climbed 2.07% to ZWL$122.9534.

Art led the fallers with a 8.33% loss to ZWL$11.0000. Nampak plunged 1.79% to ZWL$11.0000 and completed the top five losers table.

The Small Cap Index lost 0.02% to 397,388.42 points. Truwoths, which delayed publication of the full year to 11 July 2021 results, did not trade. Turnover declined to ZWL$267.04 million from yesterday’s ZWL$513.76 million after 3.29 million shares traded-HARARE

Advertisement

LEAVE A REPLY

Please enter your comment!
Please enter your name here