Vol. 25 No. 50


Week Ending
15th December 2023
Weekly Economic
Highlights
TABLE OF CONTENTS


INTERNATIONAL COMMODITY PRICE
5.

1. OVERVIEW

This report provides an analysis of the developments on money market interest rates and
transactions on the National Payment Systems, during the week ending 15th December 2023. The
report also covers developments in international mineral commodity prices and stock markets
during the same week.

Minimum and maximum savings deposit rates for both local currency deposits remained
unchanged, while local currency deposit rates for other deposit classes were higher during the
week of analysis. Commercial bank minimum and maximum foreign currency deposit rates for
savings deposits and deposits of 1-month, 3-month, 6-month and 12-month tenors were
unchanged, during the week under review.

International commodity prices for gold, lithium and crude oil declined, while those for platinum,
palladium, copper, and nickel rose, during the week ending 15th December 2023.

The aggregate value of transactions processed through the National Payment Systems platforms
amounted to ZW$8.32 trillion during the reporting week, representing an increase of 42.31%
compared to the previous week’s value of ZW$5.84 trillion. Trading on both the Zimbabwe
Stock Exchange (ZSE) and the Victoria Falls Stock Exchange (VFEX) was subdued.
2. INTEREST RATES

Local Currency (ZW$) Deposit Rates
Commercial bank minimum and maximum deposit rates for savings deposits remained
unchanged at previous week levels, while those for 1-month, 6-month and 12-month tenors
increased during the week ending 15th December 2023, amid tight local currency liquidity
conditions in the market. Average deposits rates are shown in Table 1.
Table 1: Average Deposit Rates (per annum)
Date
Savings deposits
1- Month deposit rates

3- Month deposit rates

6- Month deposit rates

12- Month deposit rates

Minimum
(%)
Maximum
(%)
Minimum
(%)
Maximum
(%)
Minimum
(%)
Maximum
(%)
Minimum
(%)
Maximum
(%)
Minimum
(%)
Maximum
(%)
17-Nov-23


24-Nov-23

1-Dec-23

8-Dec-23

15-Dec-23

Source: Reserve Bank of Zimbabwe, 2023

Local Currency (ZW$) Lending Rates
Commercial banks minimum lending rates for both individual and corporate clients were lower
during the week under analysis. Maximum lending rates for individual clients increased, while
those for corporate clients registered declines during the same period.
Table 2: Lending Rates (per annum)
Date
Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)

Individual Clients

Corporate Clients
17-Nov-23

24-Nov-23

1-Dec-23

8-Dec-23

15-Dec-23

Source: Reserve Bank of Zimbabwe, 2023

Foreign Currency (USD) Deposit Rates
The week ending 15th December 2023 saw average minimum and maximum deposit rates for
deposits of all classes remain unchanged at previous week levels, as shown in Table 3.

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

3- Month deposit rates

6-Month deposit rates

12- Month deposit rates

Minimum
(%)
Maximum
(%)
Minimum
(%)
Maximum
(%)
Minimum
(%)
Maximum
(%)
Minimum
(%)
Maximum
(%)
Minimum
(%)
Maximum
(%)
10-Nov-23

17-Nov-23

24-Nov-23

1-Dec-23

8-Dec-23

15-Dec-23

Source: Reserve Bank of Zimbabwe, 2023

Foreign Currency (USD) Lending Rates
During the week ending 15th December 2023, minimum foreign currency lending rates for both
individual clients and corporate clients decreased by 0.12 and 0.08 percentage points,
respectively. Maximum foreign currency lending rates for corporate and individual clients
registered marginal increases during the same period.

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

Individual Clients
Corporate Clients

17-Nov-23

24-Nov-23

1-Dec-23

8-Dec-23

15-Dec-23

Source: Reserve Bank of Zimbabwe, 2023

3. CLEARING AND SETTLEMENT ACTIVITY

The aggregate transactions processed in value terms through the National Payment Systems
platforms amounted to ZW$8.32 trillion, representing an increase of 42.31% from the previous
week’s level of ZW$5.84 trillion.

In value terms, the distribution of NPS transactions were as follows: Real Time Gross Settlement
(RTGS), 89.84%, Mobile, 3.60%, Point of Sale (POS), 3.95% and Automated Teller Machines
(ATM), 2.62%, as shown in Figure 1 and Table 5.

Figure 1: Composition of NPS Transactions in Value Terms

Source: Reserve Bank of Zimbabwe, 2023

The volume of transactions processed through the NPS decreased by 17.16% to close at 11.68
million. This was, underpinned by declines in POS, ATM and Mobile transaction volumes. NPS
transaction volumes were distributed as follows: Mobile,82.10%; POS, 14,89%; RTGS, 1.86%
and ATM, 1.15%, as shown in Figure 2.
RTGS
89.84%
POS
3.95%
ATM
2.62%
MOBILE
3.60%
RTGS
POS
ATM
MOBILE

Figure 2: Composition of NPS Transactions in Volume Terms

Source: Reserve Bank of Zimbabwe, 2023

Table 5: National Payment Systems Activity
PAYMENT
STREAM
WEEK ENDING
08 DECEMBER

WEEK ENDING
15 DECEMBER

% 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

4. INTERNATIONAL COMMODITY PRICE DEVELOPMENTS

During the week ending December 15th, 2023, international prices for gold, lithium and crude
oil declined, while those for platinum, palladium, copper, and nickel rose, as shown in Table 6.


RTGS, 1.86%
POS, 14.89%
ATM, 1.15%
MOBILE, 82.10%
RTGS
POS
ATM
MOBILE

Table 6: Metal and Crude Oil Prices for the week ending 1st December 2023

Gold
Platinum
Palladium
Copper
Nickel
Crude Oil
Lithium

US$/ounce
US$/ounce
US$/ounce
US$/tonne
US$/tonne
US$/barrel
US$/tonne

Weekly Average
(4-8 Dec)

11-Dec

12-Dec

13-Dec

14-Dec

15-Dec

Weekly Average
(11- 15 Dec)

Weekly Change

Source: BBC, KITCO and Bloomberg 2023

Precious Metals

During the week under review, average prices for palladium and platinum, increased by 2.38%
and 1.91%, respectively, while those for lithium and gold fell by 5.01% and 1.51%, respectively
as shown in Table 1. Platinum and palladium prices rose as the U.S. dollar and Treasury yields
slipped after the Federal Reserve signalled an end to its monetary policy tightening cycle. Gold
prices fell as investors awaited pronouncement of outcomes, following crucial central bank
meetings and U.S. inflation data that could influence the Federal Reserve’s policy path. The price
trends for the precious metals for the period from 11th December 2023 to 15th December 2023,
are shown in Figure 3.

Figure 3: Weekly Precious Metals Price Developments (11 - 15 December 2023)

Source: Kitco,2023

Source: Kitco,2023

US/ ounce
Gold
Gold
Linear (Gold)

11-Dec
12-Dec
13-Dec
14-Dec
15-Dec
US$/ounce
Platinum
Platinum
Linear (Platinum)

Source: Kitco,2023

Source: London Metal Exchange,2023

Base Metals and Brent Crude Oil
Copper prices firmed during the reporting week, following the Federal Reserve's announcement
of anticipated interest rate cuts in 2024. The falling interest rates boosted positive sentiment
towards copper prices since lower interest rates, would most likely boost business and
construction activity, thereby increasing the demand for the red metal. Likewise, nickel prices
increased by 1.12%, amid market caution ahead of the release of key U.S. inflation data. Crude
oil prices, however, declined marginally by 0.34% during the same week, as traders tried to
reconcile mixed signals for oil demand in 2024. The price trends for base metals and Brent crude
oil for the period from 11th December 2023 to 15th December 2023, are shown in Figure 4.

11-Dec
12-Dec
13-Dec
14-Dec
15-Dec
US$/ ounce
Palladium
Palladium
Linear (Palladium)

11-Dec 12-Dec 13-Dec 14-Dec 15-Dec
US$/tonne
Lithium Hydroxide
Lithium Hydroxide
Linear (Lithium Hydroxide)

Figure 4: Daily commodity price developments for copper, nickel, and Brent crude oil (11
– 15 December 2023)

Source: London Metal Exchange,2023

Source: London Metal Exchange, 2023

Source: BBC, 2023

11-Dec
12-Dec
13-Dec
14-Dec
15-Dec
US$/tonne
11-Dec
12-Dec
13-Dec
14-Dec
15-Dec
Copper

Copper

11-Dec
12-Dec
13-Dec
14-Dec
15-Dec
US$/tonne
11-Dec
12-Dec
13-Dec
14-Dec
15-Dec
Nickel

Nickel

11-Dec
12-Dec
13-Dec
14-Dec
15-Dec
US$/barrel
11-Dec
12-Dec
13-Dec
14-Dec
15-Dec
Brent crude oil

Brent crude oil

Exchange Rate Developments

Interbank Market

During the week ending 15th December 2023, the Zimbabwe dollar (ZW$) depreciated by 1.1%
against the U.S dollar on the interbank market. The average exchange rate moved from
ZW$5,818.57 per US$1 in the previous week to ZW$5,881.11 per US$1, as indicated in Table
7.
Table 7: Selected Exchange Rates (ZW$ per unit of foreign currency)

USD
ZAR
GBP
BWP
EURO
Weekly Average
(4– 8 Dec)

11-Dec

12-Dec

13-Dec

14-Dec

15-Dec

Weekly Average
(11 – 15 Dec)

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

Source: Reserve Bank of Zimbabwe, 2023

5. EQUITY MARKETS

During the week ending 15th December 2023, trading on both the Zimbabwe Stock Exchange
(ZSE) and the Victoria Falls Stock Exchange (VFEX) was subdued. Consequently, the ZSE
and VFEX All Share indices lost 2.44% and 2.67% to close at 192 837.21 points and 69.22
points, respectively.
Table 8: Zimbabwe Stock Exchange Statistics1

All Share
Index
(points)


Top 10
index
(points)
Top 15
Index
(points)
Medium
Cap
(points)
Small Cap
(points)
Mining
Index
(points)
Grand
Market
Capitalization
(ZWL
billion)
Market
Turnover
(ZWL
million)
Volume
of Shares
(million)
17-Nov-23

24-Nov-23

01-Dec-23

08-Dec-23

15-Dec-23

% Change

Source, Zimbabwe Stock Exchange, 2023


1 The Zimbabwe Stock Exchange (ZSE) adopted the Global Industry Classification Standards, effective from 1 January 2020. ZSE major indices comprise of the following
categories: All Share Index Top 10 Index; Top 15; Top 25; Medium cap and Small cap Indices.

Table 9: Victoria Falls Stock Exchange
Date
All Share Index
Points
Grand Market
Capitalization (US$
billion)
Market Turnover
(US$ million)
Volume of Shares
(million)
24-Nov-23

1-Dec-23

8-Dec-23

15-Dec-23

% Change

Source, Zimbabwe Stock Exchange, 2023

Zimbabwe Stock Exchange (ZSE) Developments
The Top 10 and Top 15 indices lost 4.78% and 4.26% while the Medium Cap index gained 2.19%
and the Small Cap remained largely unchanged, to close at 80 050.80 points, 109 363.56 points,
889 925.15 points and 5 344 423.84 respectively.

The decrease in the mainstream index, in part, emanated from share price losses in Delta
Corporation Limited (9.24%), Ok Zimbabwe Limited (4.75%), Meikles Limited (3.42%),
Nampak Zimbabwe Limited (3.33%) and Fbc Holdings Limited (3.05%).

Losses were registered in share prices of Willdale Limited (64.29%), Turnall Holdings Limited
(46.15%), Zimbabwe Newspapers (1980) Limited (15.18%), Nmbz Holdings Limited (14.99%)
and Mashonaland Holdings Limited (2.14%).

The mining index remained unchanged at 145 542.27 points during the week under review.

Figure 5 shows developments on the ZSE’s All Share, Top 10 and Mining indices from 16th
December 2022 to 15th December 2023.

Figure 5: ZSE All Share, Top 10 and Mining Indices

Source: Zimbabwe Stock Exchange, 2023

Market Turnover
During the week under review, the cumulative volume and value of shares traded increased by
70.47% and 18.64% to 15.0 million shares and ZW$11.34 billion, respectively. This compares
to 8.80 million shares and ZW$9.56 billion, registered in the previous week, respectively.

Figure 6 shows the trend in daily market turnover for the period 16th December 2022 to 15th
December 2023.

Figure 6: Market Turnover

Source: Zimbabwe Stock Exchange, 2023


16-Dec-22
30-Dec-22
13-Jan-23
27-Jan-23
10-Feb-23
24-Feb-23
10-Mar-23
24-Mar-23
07-Apr-23
21-Apr-23
05-May-23
19-May-23
02-Jun-23
16-Jun-23
30-Jun-23
14-Jul-23
28-Jul-23
11-Aug-23
25-Aug-23
08-Sep-23
22-Sep-23
06-Oct-23
20-Oct-23
03-Nov-23
17-Nov-23
01-Dec-23
15-Dec-23
Mining Index
All Share and Top 10 Indices
All Share Index (ZSE)
Top 10 Index
Mining Index


16-Dec-22
30-Dec-22
13-Jan-23
27-Jan-23
10-Feb-23
24-Feb-23
10-Mar-23
24-Mar-23
07-Apr-23
21-Apr-23
05-May-23
19-May-23
02-Jun-23
16-Jun-23
30-Jun-23
14-Jul-23
28-Jul-23
11-Aug-23
25-Aug-23
08-Sep-23
22-Sep-23
06-Oct-23
20-Oct-23
03-Nov-23
17-Nov-23
01-Dec-23
15-Dec-23
ZW$ (Million)
Negotiated Deal: 241
million First Mutual
Holdings Limited shares

Market Capitalization
Owing to the subdued trading activity on the ZSE during the week under analysis, the market
lost 0.36%, or ZW$54.76 billion worth of capitalization to close at ZW$15,315.34 billion.

Figure 7 shows the evolution of market capitalization for the period 16th December 2022 to 15th
December 2023.

Figure 7: Market Capitalization

Source: Zimbabwe Stock Exchange, 2023

Victoria Falls Stock Exchange (VFEX) Developments
The decline in the VFEX mainstream index stemmed from share price losses in National Foods
Holdings Limited (16.32%), Axia Corporation Limited (15.42%), Innscor Africa Limited
(6.40%), Padenga Holdings Limited (4.72%) and Zimplow Holdings Limited (0.75%).

Partially offsetting these losses was a gain in the share price of Simbisa Brands Limited (6.71%).

VFEX Market Turnover
The VFEX volume and value of shares declined by 39.55% and 11.52% to 2.70 million shares
and US$0.91 million, respectively. This compares to 4.47 million shares and US$1.03 million
registered in the previous week.


16-Dec-22
30-Dec-22
13-Jan-23
27-Jan-23
10-Feb-23
24-Feb-23
10-Mar-23
24-Mar-23
07-Apr-23
21-Apr-23
05-May-23
19-May-23
02-Jun-23
16-Jun-23
30-Jun-23
14-Jul-23
28-Jul-23
11-Aug-23
25-Aug-23
08-Sep-23
22-Sep-23
06-Oct-23
20-Oct-23
03-Nov-23
17-Nov-23
01-Dec-23
15-Dec-23
$ Billions

VFEX Market Capitalization
Owing to the negative trading activity on the VFEX market capitalisation declined by 2.67% to
close at US$1.18 billion compared to US$1.22 billion, recorded in the previous week.

Figure 8: VFEX All Share Index

Source: Victoria Falls Stock Exchange (VFEX), 2023


RESERVE BANK OF ZIMBABWE

16-Dec-22
30-Dec-22
13-Jan-23
27-Jan-23
10-Feb-23
24-Feb-23
10-Mar-23
24-Mar-23
07-Apr-23
21-Apr-23
05-May-...
19-May-...
02-Jun-23
16-Jun-23
30-Jun-23
14-Jul-23
28-Jul-23
11-Aug-23
25-Aug-23
08-Sep-23
22-Sep-23
06-Oct-23
20-Oct-23
03-Nov-23
17-Nov-23
01-Dec-23
15-Dec-23


APPENDIX 1: FOREIGN EXCHANGE AUCTION RESULTS FOR WHOLESALEFX2


Source: Reserve Bank of Zimbabwe, 2023


2 Wholesale Foreign Currency Auction (Wholesale FX) is normally conducted on Tuesday every week. The RBZ MPC resolutions dated 6 June 2023 resolved that with effect
from 7 June 2023, the Bank shall sell foreign currency at the market-determined exchange rate through banks to support and strengthen the foreign exchange interbank
market, and banks shall in turn sell the foreign currency to their customers.


WHOLESALE FX


21-Nov-23
28-Nov-23
05-Dec-23
12-Dec-23
Total
Bids (US$ dollars)

Amount Allotted (US$
dollars)

Highest 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


21-Nov-23

28-Nov-23

05-Dec-23

12-Dec-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
2,114,258.76
2,177,119.32
2,340,696.09
1,568,498.61