By ETimes
Over the past few weeks, the vibrancy witnessed on the Zimbabwe Stock Exchange has been positive amid the fast depreciation of the local currency, election mood and inflation.
This comes as the Reserve Bank of Zimbabwe issued two statements relating to some panic in the market about ‘artificial’ local US dollar nostros and exchange rate volatility.
“The RBZ wishes to advise and reassure the public that there is sufficient foreign exchange in the market to satisfy all needs and demands of banks’ customers,” RBZ governor John Mangudya said in a statement.
“The foreign exchange liquidity position of banks stands at 60% in both cash and balances held with foreign corresponding banks.”
On the other hand, the central bank, through its Financial Intelligence Unit (FIU) warned businesses engaging in exchange rate manipulation.
Prices of goods and services have increased rapidly as businesses try to hedge against inflationary pressures.
“The FIU has noted with grave concern that some business are engaging in illegal forward pricing practices thereby manipulating the foreign exchange rate.
In terms of the law, businesses are permitted to apply a margin of up to 10% above the interbank exchange rate, according to FIU.
“There is no justification for non-compliance with the legal margins in light of the recent implementation of a market determined interbank exchange rate system. The forward pricing and non-compliance with legal limits is being done at the detriment of the consumers who bear the brunt of the resultant unjustified pricing of goods and services.
“With immediate effect, the FIU will be escalating and widening remedial and punitive measures against delinquent businesses by not only imposing administrative fines but also directing that culprits’ bank accounts be frozen indefinitely and referring the culprits to relevant authorities for the suspension/revocation of trading or operating licenses and prosecution. Liability will also be extended to directors and owners of the concerned businesses,” reads the statement.
At close of business, the ZSE All Share Index jumped 4.81% to 175,785.58 points while market capitalisation increased by $734.32 billion to $14.61 trillion.
During the session, investors transacted 17.77 million stocks worth $9.32 billion in 333 deals.
Investor sentiment remained at the stock exchange yesterday as there were 24 price gainers and 3 price losers, indicating a positive market breadth.
Transactions in the shares of Delta topped the activity chart with 333.24 million shares valued at N2.33 billion.
Transcorp followed with 1.25 million shares worth $5.13 billion, while Econet traded 1.3 million shares valued at $1.43 billion – Harare