Vol. 25 No. 06


Week Ending
10th February 2023
Weekly Economic
Highlights
TABLE OF CONTENTS


1.
INTEREST RATES

Local Currency (ZWL) Deposit Rates

Minimum deposits rates across all deposit classes softened during the week ending 10th February
2023. During the same week, maximum deposits rates for savings deposits and deposits of 1month tenor registered increases, while those for deposits of 3-month tenor declined, 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 (%)
13-Jan-23

20-Jan-23

27-Jan-23

3-Feb-23

10-Feb-23

Source: Reserve Bank of Zimbabwe, 2023


Local Currency (ZWL) Lending Rates

Commercial bank minimum and maximum lending rates for both individual and corporate clients
registered declines during the week under analysis, as shown in Table 2.

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

Individual Clients

Corporate Clients
13-Jan-23

20-Jan-23

27-Jan-23

3-Feb-23

10-Feb-23

Source: Reserve Bank of Zimbabwe, 2023

Foreign Currency (USD) Deposit Rates

Minimum deposits rates for savings deposits, deposits of 1-month and 3-months tenor increased
during the week ending 10th February 2023. Maximum deposits rates for savings deposits and
deposits of 3-months tenor declined, while those for deposits of 1-month tenor remained
unchanged during the week under review, as shown in Table 3.


Table 3: Average Deposit Rates (per annum)
Date
Savings deposits (%)
1- Month deposit’s rates (%)

3- Month deposit rates (%)

Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)
27-Jan-23

3-Feb-23

10-Feb-23

Source: Reserve Bank of Zimbabwe, 2023


Foreign Currency (USD) Lending Rates

During the week under review, commercial bank minimum lending rates for individual clients
declined, while those for corporate clients registered an increase. Maximum lending rates for
corporate and individual clients increased by 1.06 and 0.3 percentage points, respectively, during
the same week.

Table 4: Lending Rates (per annum)
Date
Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)

Individual Clients

Corporate Clients
27-Jan-23

3-Feb-23

10-Feb-23

Source: Reserve Bank of Zimbabwe, 2023
2.
CLEARING AND SETTLEMENT ACTIVITY

The aggregate value of transactions processed through the National Payment System (NPS) stood
at ZW$648.41 billion, during the week 10th February 2023. This represented an increase of
6.04%, compared to ZW$611.45 billion reported in the previous week. Real Time Gross
Settlement (RTGS) transactions increased by 6.63% to ZW$520.78 billion, from ZW$488.40
billion recorded in the preceding week. In proportions, the NPS transaction values were
distributed as follows: RTGS, 80.32%, POS, 9.60%; Mobile, 7.08%; and ATM, 3.01%.

Figure 1: Composition of NPS Transactions in Value Terms

Source: Reserve Bank of Zimbabwe, 2023


The volume of NPS transactions increased by 1.75% to 12.39 million, during the week under
review, from 12.17 million recorded in the preceding week. Mobile based transactions dominated
NPS transaction volumes at 74.99% of the total, followed by POS, 22.58%; RTGS, 1.65%; and
ATM, 0.79%, as shown in Figure 2.


Figure 2: Composition of NPS Transactions in Volume Terms

Source: Reserve Bank of Zimbabwe, 2023


RTGS
80.32%
POS
9.60%
ATM
3.01%
MOBILE
7.08%
RTGS
POS
ATM
MOBILE
RTGS, 1.65%
POS, 22.58%
ATM, 0.79%
MOBILE, 74.99%
RTGS
POS
ATM
MOBILE

Table 5: National Payment Systems Activity
PAYMENT
STREAM
WEEK ENDING
3rd February 2023

WEEK ENDING
10th February 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

During the week under review, international commodity prices for gold, platinum, palladium,
copper, and nickel retreated, while crude oil prices firmed. Commodity markets were largely
influenced by a stronger US dollar, which made greenback denominated commodities more
expensive to holders of other currencies. The commodity price developments during the
reporting week are shown in Table 6.

Table 6: Metal and Crude Oil Prices for the week ending 10th February 2023

Gold
Platinum
Palladium
Copper
Nickel
Crude Oil

US$/ounce US$/ounce US$/ounce US$/tonne US$/tonne US$/barrel
Weekly Average (30 Jan – 3 Feb 23)

6-Feb-23

7-Feb-23

8-Feb-23

9-Feb-23

10-Feb-23

Weekly Average (6-10 Feb 23)

Weekly Change (%)

Source: BBC, KITCO and Bloomberg, 2023
Gold

Gold prices continued on a negative trajectory, falling by 2.37% from US$1,921.13 per ounce in
the previous week to US$1,875.62 per ounce, during the week ending 10th February 2023. The
price of the yellow metal retreated on account of a stronger US dollar and as investors remained
wary of future interest rate hikes by the U.S. Federal Reserve to tame high inflation.

Platinum
Platinum prices remained sluggish, shedding 3.53% to close the week under review at
US$972.80 per ounce, from US$1,008.40 recorded in the previous week. Prices continued to be
weighed down by weak industrial demand, coupled with gloomy investment prospects as
investors moved to interest bearing assets and the US dollar.

Palladium
The negative trend in palladium prices persisted as the US dollar strengthened and the industry
which relies heavily on palladium for the manufacturing of electronics weakened. Prices
retreated by 2.45%, from US$1,658.60 per ounce in the prior week to US$1,617.90 per ounce,
during the week under review.

Copper
During the week ending 10th February 2023, copper prices decreased by 2.35%, from
US$9,128.90 per tonne recorded in the previous week to US$8,914.20 per tonne. Prices were
weighed down by growing uncertainty over economic recovery in China, the largest user of
industrial metals.

Nickel
Nickel prices were subdued owing to a stronger US dollar, increasing stockpiles as well as
slackening demand in China. Resultantly, prices retreated by 7.4%, from US$29,357.00 per
tonne in the week ending 3rd February 2023 to US$27,184.00 per tonne, during the week under
review.

Brent Crude Oil

Brent crude oil prices rallied during the week ending 10th February 2023, spurred by concerns
over supply after Russia announced plans to cut output in response to Western sanctions against
Russian energy. Reflecting this development, weekly average crude oil prices increased by 1.5%,
from US$83.06 per barrel in the previous week to US$84.31 per barrel, during the week ending
10th February 2023.

4. EXCHANGE RATE DEVELOPMENTS


Interbank Market
On the interbank market, the Zimbabwe dollar (ZW$) depreciated by 3.5% against the US dollar,
from ZW$798.7011 per US$1 in the previous week to ZW$826.9948 per US$1, during the week
under review, as shown in Table 7.

Table 7: Interbank Market Exchange Rates1

USD
ZAR
GBP
BWP
EURO

Weekly Average (30 Jan-3 Feb 23)

6-Feb-23

7-Feb-23

8-Feb-23

9-Feb-23

10-Feb-23

Weekly Average (6-10 Feb 23 )

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

Source: Reserve Bank of Zimbabwe, 2023


5. EQUITY MARKETS


Zimbabwe Stock Exchange
The week ending 10th February 2023 saw the Zimbabwe Stock Exchange (ZSE) exhibit bullish
sentiments for the third consecutive week. As a result, the ZSE All Share index rose by 20.83%
to close at 29 944.34 points. The Top 10, Top 15, Small and Medium indices gained by 25.38%,
24.24%, 9.64% and 2.73% to close at 19 085.82 points, 21 136.88 points, 55 596.86 points and
518 724.23 points, respectively.

The increase in the mainstream index was a result of share price gains for Ecocash Holdings
Zimbabwe Limited (51.52%), Econet Wireless Zimbabwe Limited (50.14%), Africa Sun
Limited (38.01%), Delta Corporation Limited (36.17%) and Nampak Zimbabwe Limited
(32.86%). Partially offsetting the gains were losses in share prices of Mashonaland Holdings
Limited (19.44%), Rainbow Tourism Group Limited (15.00%), Willdale Limited (10.77%),
Ariston Holdings Limited (9.35%) and General Beltings Holdings Limited (5.85%). The
resources index2 added 14.16% to close at 29 116.96 points, during the week under review.


1 Direct quote – the amount of domestic currency needed to exchange for 1 unit of foreign currency
2 Resource Index – Comprise RioZim Limited Share Price

Table 8: Zimbabwe Stock Exchange Statistics3

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)


6-Jan-23

13-Jan-23

20-Jan-23

27-Jan-23

3-Feb-23

10-Feb-23

% Change

Source: Zimbabwe Stock Exchange (ZSE), 2023

Figure 3 shows the trend in daily market turnover for the period from 31st January 2022 to 10th
February 2023.

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


Market Turnover and Volume

During the week ending 10th February 2023, the cumulative volume of shares traded on the ZSE
declined by 18.79% to 56.27 million, from to 69.29 million recorded in the prior week. However,
the turnover value of shares traded increased by 90.97% to ZW$9.87 billion, as trading activity

3 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.


31-Jan-22
15-Feb-22
2-Mar-22
17-Mar-22
1-Apr-22
16-Apr-22
1-May-22
16-May-22
31-May-22
15-Jun-22
30-Jun-22
15-Jul-22
30-Jul-22
14-Aug-22
29-Aug-22
13-Sep-22
28-Sep-22
13-Oct-22
28-Oct-22
12-Nov-22
27-Nov-22
12-Dec-22
27-Dec-22
11-Jan-23
26-Jan-23
10-Feb-23
All Share Index
Top 10 Index

was concentrated in selected heavy-weight counters. Figure 4 shows the trend in daily market
turnover for the period from 31st January 2022 to 10th February 2023.

Figure 4: Daily Market Turnover


Source: Zimbabwe Stock Exchange, 2023

Market Capitalization

The local bourse added ZW$553.77 billion, or 20.72% worth of capitalization to close at
ZW$3,226.91 billion, during the week under review. Figure 5 shows the evolution of ZSE market
capitalization for the period from 31st January 2022 to 10th February 2023.

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

Victoria Falls Stock Exchange

The Victoria Falls Stock Exchange (VFEX) traded on a negative trajectory for the fourth
consecutive week. Resultantly, the VFEX All Share index declined by 0.60% to close at 109.57


31-Jan-22
15-Feb-22
02-Mar-22
17-Mar-22
01-Apr-22
16-Apr-22
01-May-22
16-May-22
31-May-22
15-Jun-22
30-Jun-22
15-Jul-22
30-Jul-22
14-Aug-22
29-Aug-22
13-Sep-22
28-Sep-22
13-Oct-22
28-Oct-22
12-Nov-22
27-Nov-22
12-Dec-22
27-Dec-22
11-Jan-23
26-Jan-23
10-Feb-23
ZW$ millions
Negotiated deal: 61.16 million Larfage
Cement
Zimbabwe
Limited
shares
exchanged hands at ZW$312.65


31-Jan-22
15-Feb-22
02-Mar-22
17-Mar-22
01-Apr-22
16-Apr-22
01-May-22
16-May-22
31-May-22
15-Jun-22
30-Jun-22
15-Jul-22
30-Jul-22
14-Aug-22
29-Aug-22
13-Sep-22
28-Sep-22
13-Oct-22
28-Oct-22
12-Nov-22
27-Nov-22
12-Dec-22
27-Dec-22
11-Jan-23
26-Jan-23
10-Feb-23
Billions

points. The cumulative volume of shares traded on the VFEX decreased by 49.39% to 0.08
million, during the week ending 10th February 2023. Concomitantly, the value of shares traded
declined by 16.08% to USD0.04 million, during the same week. VFEX market capitalization
stood at US$0.62 billion, a decline of 0.60% or US$0.01 billion, from US$0.63 billion recorded
in the previous week. Figure 6 shows the trend in the VFEX All Share Index (ASI) for the period
from 31st January 2022 to 10th February 2023.


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 declined from 80,240.92 points in the
previous week to close at 78,985.35 points, during the week ending 10th February 2023. JSE
market capitalization also decreased by 0.91% to ZAR22.87 trillion, during the same week.

Table 9: Johannesburg Stock Exchange (JSE) Statistics
Period
All Share Index
Market Capitalization
(points)
(ZAR trillions)
6-Jan-23
76,858.94
22.30
13-Jan-23
79,333.72
22.88
20-Jan-23
79,269.77
23.02
27-Jan-23
80,791.36
23.28
3-Feb-23
80,240.92
23.08
10-Feb-23
78,985.35
22.87
% Change
-1.56
-0.91
Source: 2023


31-Jan-22
15-Feb-22
02-Mar-22
17-Mar-22
01-Apr-22
16-Apr-22
01-May-22
16-May-22
31-May-22
15-Jun-22
30-Jun-22
15-Jul-22
30-Jul-22
14-Aug-22
29-Aug-22
13-Sep-22
28-Sep-22
13-Oct-22
28-Oct-22
12-Nov-22
27-Nov-22
12-Dec-22
27-Dec-22
11-Jan-23
26-Jan-23
10-Feb-23

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


RESERVE BANK OF ZIMBABWE


31-Jan-22
15-Feb-22
2-Mar-22
17-Mar-22
1-Apr-22
16-Apr-22
1-May-22
16-May-22
31-May-22
15-Jun-22
30-Jun-22
15-Jul-22
30-Jul-22
14-Aug-22
29-Aug-22
13-Sep-22
28-Sep-22
13-Oct-22
28-Oct-22
12-Nov-22
27-Nov-22
12-Dec-22
27-Dec-22
11-Jan-23
26-Jan-23
10-Feb-23

APPENDIX 1: FOREIGN EXCHANGE AUCTION RESULTS FOR MAINFX4 AND SMEFX5
Source: Reserve Bank of Zimbabwe, 2023


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

MAINFX
20-Jan-23 27-Jan-23 3-Feb-23 10-Feb-23

SMEFX
20-Jan-23 27-Jan-23 3-Feb-23 10-Feb-23
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
Purpose
MAINFX
20-Jan-23 27-Jan-23 3-Feb-23 10-Feb-23
SMEFX
20-Jan-23 27-Jan-23 3-Feb-23 10-Feb-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

2,269,815.79