Vol. 25 No. 03


Week Ending
20th January 2023
Weekly Economic
Highlights
TABLE OF CONTENTS


1.
INTEREST RATES

Deposit Rates

During the week ending 20th January 2023, minimum and maximum deposits rates for savings
deposits and deposits of 1-month and 3-months tenor remained at previous week levels, as shown
in Table 1.


Table 1: Average Deposit Rates (per annum)
Date
Savings deposits (%)
1- Month deposit’s rates (%)

3- Month deposit rates (%)

Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)
23-Dec-22

30-Dec-22

6-Jan-23

13-Jan-23

20-Jan-23

Source: Reserve Bank of Zimbabwe, 2023


Lending Rates

Commercial bank minimum and maximum lending rates for both individual and corporate clients
were unchanged during the week ending 20th January 2023, as shown in Table 2.

Table 2: Lending Rates (per annum)
Date
Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)

Individual Clients

Corporate Clients
23-Dec-22

30-Dec-22

6-Jan-23

13-Jan-23

20-Jan-23

Source: Reserve Bank of Zimbabwe, 2023

2.
CLEARING AND SETTLEMENT ACTIVITY

The value of transactions processed through the National Payment Systems (NPS) amounted to
ZW$633.30 billion, during the week under review. This represented a decrease of 5.58%,
compared to ZW$670.76 billion worth of transactions processed in the previous week. Real Time
Gross Settlement (RTGS) transactions fell by 7.91% to ZW$518.51 billion, from ZW$563.05
billion recorded in the preceding week. In proportions, the NPS transaction values were
distributed as follows: RTGS, 81.87%, POS, 10.48%; Mobile, 5.04%; and ATM, 2.61%.


Figure 1: Composition of NPS Transactions in Value Terms

Source: Reserve Bank of Zimbabwe, 2023


The volume of NPS transactions increased by 1.95%, from 12.00 million in the preceding week
to 12.23 million, during the week under review. Mobile based transactions continued to dominate
NPS transaction volumes at 69.70% of the total, followed by POS, 27.88%; RTGS, 1.33%; and
ATM, 1.09%, as shown in Figure 2.


Figure 2: Composition of NPS Transactions in Volume Terms

Source: Reserve Bank of Zimbabwe, 2023

RTGS
81.87%
POS
10.48%
ATM
2.61%
MOBILE
5.04%
RTGS
POS
ATM
MOBILE
RTGS, 1.33%
POS, 27.88%
ATM, 1.09%
MOBILE, 69.70%
RTGS
POS
ATM
MOBILE

Table 3: National Payment Systems Activity
PAYMENT
STREAM
WEEK ENDING
13th January 2023

WEEK ENDING
20th January 2023
% CHANGE FROM
LAST WEEK
PROPORTION
%

Values in ZW$ Millions


RTGS

POS

ATM

MOBILE

TOTAL

Volumes


RTGS

POS

ATM

MOBILE

TOTAL

Source: Reserve Bank of Zimbabwe, 2023

3.
INTERNATIONAL COMMODITY PRICE DEVELOPMENTS

Average commodity prices for gold, nickel, copper and crude oil firmed, during the week ending
20th January 2022. However, platinum and palladium prices registered decreases, compared to
the previous week. The commodity prices developments during the week under analysis are
shown in Table 4.

Table 4: Metal and Crude Oil Prices for the week ending 20th January 2023

Gold
Platinum
Palladium
Copper
Nickel
Crude Oil

US$/ounce US$/ounce US$/ounce US$/tonne US$/tonne US$/barrel
Weekly Average (9-13 Jan 23)

16-Jan-23

17-Jan-23

18-Jan-23

19-Jan-23

20-Jan-23

Weekly Average (16-20 Jan 23)

Weekly Change (%)

Source: BBC, KITCO and Bloomberg, 2023
Gold

During the week ending 20th January 2023, gold prices rose by 1.6%, from US$1,886.23 per
ounce in the previous week to US$1,915.60 per ounce. The yellow metal prices firmed as cooling
U.S. inflation raised hopes that the US Federal Reserve would slow down its aggressive monetary
policy tightening.

Platinum
Platinum prices declined by 3.3%, from US$1,081.60 per ounce in the prior week to
US$1,045.80 per ounce, during the week ending 20th January 2023. The decline was underpinned
by sluggish demand from the automotive industries as they scaled down production, owing to
the continued semi-conductor chip shortages.

Palladium
Palladium prices also declined by 3.2%, from US$1,786.50 per ounce in the week ending 13th
January 2023 to US$1,729.60 per ounce, during the week under review. Prices slumped amid
weak demand, as disruptions to the global semi-conductor industry caused supply chain
shortages in the automotive industry.

Copper
Copper pieces were bullish during the week under review, boosted by investor optimism in top
consumer, China. This followed the relaxation of China’s Zero-Covid-19 policy. In addition, a
falling U.S. dollar added further support to prices of the red metal. Prices rose by 2.9%, from
US$9,046.40 per tonne in the previous week to US$9,307.37 per tonne, during the week under
review.

Nickel
Nickel prices increased by 1.5%, from US$27,149.40 per tonne in the previous week to
US$27,565.60 per tonne, during the week under review. Prices were supported by a weaker US
dollar and prospects of demand recovery in China, following the relaxation of Covid-19
restrictions.

Brent Crude Oil

Brent crude oil prices rose by 2.6%, from US$82.75 per barrel recorded in the previous week to
US$84.90 per barrel, during the week ending 20th January 2023. Prices rose on account of
prospects of improved demand in China, following the relaxation of stringent Covid-19 induced
restrictions.

4. EXCHANGE RATE DEVELOPMENTS


Foreign Exchange Auction
On the Foreign Exchange Auction, the ZW$/US$ exchange rate depreciated by 3.3%, from an
average of ZW$698.5237 per USD$1 in the previous week to ZW$721.3687 per US$1, during
the week ending 20th January 2023. The developments in selected exchange rates are shown in
Table 5.

Table 5: Foreign Exchange Auction Exchange Rates1

USD
ZAR
GBP
BWP
EURO

Weekly Average (9-13 Jan 23)

16-Jan-23

17-Jan-23

18-Jan-23

19-Jan-23

20-Jan-23

Weekly Average (16-20 Jan 23)

Appr(-)/Depr(+) (%) of the ZWL

Source: Reserve Bank of Zimbabwe, 2023

Interbank Market
During the reporting week, the Zimbabwe dollar (ZW$) depreciated by 3.4% against the US
dollar on the interbank market, from ZW$707.0124 per US$1 in the previous week to
ZW$730.7558 per US$1, as shown in Table 6.

Table 6: Interbank Market Exchange Rates2

USD
ZAR
GBP
BWP
EURO

Weekly Average (9-13 Jan 23)

16-Jan-23

17-Jan-23

18-Jan-23

19-Jan-23

20-Jan-23

Weekly Average (16-20 Jan 23 )

Appr(-)/Depr(+) (%) of the ZWL

Source: Reserve Bank of Zimbabwe, 2023


1 Direct quote – the amount of domestic currency needed to exchange for 1 unit of foreign currency
2 Direct quote – the amount of domestic currency needed to exchange for 1 unit of foreign currency

5. EQUITY MARKETS


Zimbabwe Stock Exchange
During the week ending 20th January 2023, the Zimbabwe Stock Exchange (ZSE) was
characterised by mixed trading, with the ZSE All Share index declining by 1.44% to close at 21
665.00 points. The Top 10 and Top 15 indices declined by 3.69% and 2.89% to close at 21
665.00 points and 14 851.04 points respectively. However, the Medium and Small Cap Indices
added 4.04% and 2.68% to close at 43 623.29 points and 469 419.34 points, respectively.

The decline in the mainstream index was a result of share price declines for OK Zimbabwe
Limited (12.86%), First Capital Bank Limited (12.50%), First Mutual Holdings Limited
(10.52%), Innscor Africa Limited (7.13%) and Dairibord Holdings Limited (6.00%). Partially
offsetting the decreases were gains in share prices of Nampack Zimbabwe Limited (31.43%),
Amalgamated Regional Trading (ART) Limited (28.57%), Rainbow Tourism Group Limited,
(20.12%), Hippo Valley Estates Limited (19.28%) and Zimbabwe Newspapers (1980) Limited
(15.21%). The resources index3, remained unchanged at 25 496.86 points, during the week under
review.

Table 7: Zimbabwe Stock Exchange Statistics4

All Share
Index
Points
Top 10
index3
(points)


Mining
Index
(points)
Grand
Market
Capitaliz
ation
(ZWL
billion)
Market
Turnover
(ZWL
million)
Volume
of Shares
(million)
Top 15
Index3
points
Medium
Cap3
(points)
Small Cap3
(points)


16-Dec-22

23-Dec-22

30-Dec-22

6-Jan-23

13-Jan-23

20-Jan-23

% Change


Source: Zimbabwe Stock Exchange (ZSE), 2023


3 Resource Index – Comprise RioZim Limited Share Price
4 The Zimbabwe Stock Exchange (ZSE) adopted the Global Industry Classification Standards, effective from 1 January 2020.The ZSE indices
constitute the following categories; Top 10 Index; Top 15; Top 25; Medium cap and Small cap Indices.

Figure 3 shows the trend in daily market turnover for the period from 4th February 2022 to 20th
January 2023.

Figure 3: Zimbabwe Stock Exchange All Share and Top 10 Indices
Source: Zimbabwe Stock Exchange, 2023

Market Turnover and Volume

During the week under analysis, the cumulative value of shares traded on the ZSE increased by
36.05%, from ZW2.27 billion in the previous week to ZW3.09 billion. The cumulative volume
of shares traded declined by 22.29% to 18.99 million shares during the week under review, from
24.44 million reported in the preceding week. Figure 4 shows the trend in daily market turnover
for the period from 4th February 2022 to 20th January 2023.

Figure 4: Daily Market Turnover


Source: Zimbabwe Stock Exchange, 2023


4-Feb-22
18-Feb-22
4-Mar-22
18-Mar-22
1-Apr-22
15-Apr-22
29-Apr-22
13-May-22
27-May-22
10-Jun-22
24-Jun-22
8-Jul-22
22-Jul-22
5-Aug-22
19-Aug-22
2-Sep-22
16-Sep-22
30-Sep-22
14-Oct-22
28-Oct-22
11-Nov-22
25-Nov-22
9-Dec-22
23-Dec-22
6-Jan-23
20-Jan-23
All Share Index
Top 10 Index


04-Feb-22
18-Feb-22
04-Mar-22
18-Mar-22
01-Apr-22
15-Apr-22
29-Apr-22
13-May-22
27-May-22
10-Jun-22
24-Jun-22
08-Jul-22
22-Jul-22
05-Aug-22
19-Aug-22
02-Sep-22
16-Sep-22
30-Sep-22
14-Oct-22
28-Oct-22
11-Nov-22
25-Nov-22
09-Dec-22
23-Dec-22
06-Jan-23
20-Jan-23
ZW$ millions
Negotiated deal: 61.16 million Larfage
Cement
Zimbabwe
Limited
shares
exchanged hands at ZW$312.65

Market Capitalization

Market capitalisation for the local bourse declined by 0.63%, from ZW$2,356.79 billion in the
preceding week to ZW2, 341.88 billion, during the week ending 20th January 2023. Figure 5
shows the evolution of the ZSE market capitalization for the period from 4th February 2022 to
20th January 2023.

Figure 5: Daily Market Capitalization in ZW$ billions
Source: Zimbabwe Stock Exchange, 2023

Victoria Falls Stock Exchange

The Victoria Falls Stock Exchange (VFEX) was characterised by negative trading during the
week ending 20th January 2023. As a result, the VFEX All Share index shed 5.15% to close at
116.52 points. The cumulative volume of shares traded on the VFEX declined by 53.01% to 0.30
million shares, during the week under review. In concomitance, the value of shares traded also
declined by 36.10% to USD0.14 million, during the same week. VFEX market capitalization
stood at US$0.66 billion, a decline of 5.15% or US$0.04 billion, from US$0.70 billion recorded
in the previous week. Figure 6 shows the trend in the VFEX All Share Index (ASI) for the period
from 4th February 2022 to 20th January 2023.


04-Feb-22
18-Feb-22
04-Mar-22
18-Mar-22
01-Apr-22
15-Apr-22
29-Apr-22
13-May-22
27-May-22
10-Jun-22
24-Jun-22
08-Jul-22
22-Jul-22
05-Aug-22
19-Aug-22
02-Sep-22
16-Sep-22
30-Sep-22
14-Oct-22
28-Oct-22
11-Nov-22
25-Nov-22
09-Dec-22
23-Dec-22
06-Jan-23
20-Jan-23
Billions

Figure 6: Victoria Falls Stock Exchange All Share Index

Source: Victoria Falls Stock Exchange, 2023

Johannesburg Stock Exchange (JSE) Developments

The Johannesburg Stock Exchange (JSE) All Share Index marginally declined from 79,333.72
points in the previous week to close at 79,269.77 points, during the week ending 20th January
2023. However, JSE market capitalization rose by 0.61% to ZAR23.02 trillion, during the same
week.

Table 8: Johannesburg Stock Exchange (JSE) Statistics
Period
All Share Index
Market Capitalization
(points)
(ZAR trillions)
16-Dec-22
72,989.34
21.60
23-Dec-22
73,493.47
21.45
30-Dec-22
73,048.57
21.34
6-Jan-23
76,858.94
22.30
13-Jan-23
79,333.72
22.88
20-Jan-23
79,269.77
23.02
% Change
-0.08
0.61
Source: 2023


04-Feb-22
18-Feb-22
04-Mar-22
18-Mar-22
01-Apr-22
15-Apr-22
29-Apr-22
13-May-22
27-May-22
10-Jun-22
24-Jun-22
08-Jul-22
22-Jul-22
05-Aug-22
19-Aug-22
02-Sep-22
16-Sep-22
30-Sep-22
14-Oct-22
28-Oct-22
11-Nov-22
25-Nov-22
09-Dec-22
23-Dec-22
06-Jan-23
20-Jan-23

Figure 7: Johannesburg Stock Exchange (JSE) All Share Index

Source:


RESERVE BANK OF ZIMBABWE


4-Feb-22
18-Feb-22
4-Mar-22
18-Mar-22
1-Apr-22
15-Apr-22
29-Apr-22
13-May-22
27-May-22
10-Jun-22
24-Jun-22
8-Jul-22
22-Jul-22
5-Aug-22
19-Aug-22
2-Sep-22
16-Sep-22
30-Sep-22
14-Oct-22
28-Oct-22
11-Nov-22
25-Nov-22
9-Dec-22
23-Dec-22
6-Jan-23
20-Jan-23

APPENDIX 1: FOREIGN EXCHANGE AUCTION RESULTS FOR MAINFX5 AND SMEFX6
Source: Reserve Bank of Zimbabwe, 2023
*The first foreign currency auction for 2023 commenced on the 10th of January 2023. The last foreign currency auction for 2022 was on the 13th of December
2022.

5 Main Foreign Currency Auction
6 Small and Medium Enterprises Foreign Currency Auction

MAINFX
9-Dec-22 16-Dec-22 13-Jan-23 20-Jan-23

SMEFX
9-Dec-22 16-Dec-22 13-Jan-23 20-Jan23
Total
Bids (US$ dollars)

Amount Allotted
(US$ dollars)

Highest Rate

Lowest Bid
Rate

Lowest Bid Rate
Allotted

Weighted Average
Rate

Number of Bids
Received

Number of Bids
Rejected

APPENDIX 2: SUMMARY OF FOREIGN CURRENCY AUCTION ALLOTMENTS BY PURPOSE
Source: Reserve Bank of Zimbabwe, 2023
* The first foreign currency auction for 2023 commenced on the 10th of January 2023. The last foreign currency auction for 2022 was on the 13th
of December 2022.
Purpose
MAINFX
9-Dec-22 16-Dec-22 13-Jan-23 20-Jan-23
SMEFX
9-Dec-22 16-Dec-22 13-Jan-23 20-Jan-23
Raw Materials


Machinery and
Equipment

Consumables
(Incl. Spares,
Tyres,
Packaging)

Pharmaceuticals
and Chemicals

Services
(Loans,
Dividends and
Disinvestments)

Retail and
Distribution

Fuel, Electricity
and Gas

Paper and
Packaging

TOTAL

1,748,201.30