Vol. 25 No. 02


Week Ending
13th January 2023
Weekly Economic
Highlights
TABLE OF CONTENTS


1.
INTEREST RATES

Deposit Rates

Average minimum deposit rates for savings deposits and deposits of 3-month tenor increased,
during the week ending 13th January 2023. However, minimum deposit rates on deposits of 1month tenor remained unchanged. Maximum deposit rates across all classes of deposits
registered increases during the same week, 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 (%)
16-Dec-22

23-Dec-22

30-Dec-22

6-Jan-23

13-Jan-23

Source: Reserve Bank of Zimbabwe, 2023


Lending Rates

The week ending 13th January 2023, saw a decline in commercial bank minimum lending rates
for individual clients, while those for corporate clients increased. Maximum lending rates for
individual clients at commercial banks were higher compared to the previous week levels, while
those for corporate clients marginally softened during the week under review, as shown in Table
2.

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

Individual Clients

Corporate Clients
16-Dec-22

23-Dec-22

30-Dec-22

6-Jan-23

13-Jan-23

Source: Reserve Bank of Zimbabwe, 2023

2.
CLEARING AND SETTLEMENT ACTIVITY

During the week ending 13th January 2023, the aggregate value of transactions processed through
the National Payment Systems (NPS) increased by 21.59% to ZW$670.76 billion, from
ZW$550.01 billion recorded in the previous week. Real Time Gross Settlement (RTGS)
transactions increased by 22.96% to ZW$563.05 billion, from ZW$457.91 billion recorded
during the week ending 6th January 2023. The NPS transactions values were distributed as
follows: RTGS, 83.94%, POS, 8.91%; Mobile, 5.03%; and ATM, 2.12%.


Figure 1: Composition of NPS Transactions in Value Terms

Source: Reserve Bank of Zimbabwe, 2023


The volume of NPS transactions decreased by 10.20% to 12.00 million, during the week under
review, from 13.36 million recorded in the preceding week. Mobile based transactions dominated
NPS transaction volumes at 74.70% of the total, followed by POS, 22.92%; RTGS, 1.55%; and
ATM, 0.83%, as shown in Figure 2.


Figure 2: Composition of NPS Transactions in Volume Terms

Source: Reserve Bank of Zimbabwe, 2023

RTGS
83.94%
POS
8.91%
ATM
2.12%
MOBILE
5.03%
RTGS
POS
ATM
MOBILE
RTGS, 1.55%
POS, 22.92%
ATM, 0.83%
MOBILE, 74.70%
RTGS
POS
ATM
MOBILE

Table 3: National Payment Systems Activity
PAYMENT
STREAM
WEEK ENDING
6th January 2023

WEEK ENDING
13th 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

During the week ending 13th January 2023, average prices for gold, platinum, palladium, copper,
and crude oil firmed, while nickel prices declined. Most commodity prices were generally bullish
as the US dollar retreated after U.S. economic data cemented expectations of a less-hawkish
monetary policy stance from the US Federal Reserve Bank. Table 4 shows the commodity price
developments during the week under analysis.

Table 4: Metal and Crude Oil Prices for the week ending 13th January 2023

Gold
Platinum
Palladium
Copper
Nickel
Crude Oil

US$/ounce US$/ounce US$/ounce US$/tonne US$/tonne US$/barrel
Weekly Average (3-6 Jan 23)

9-Jan-23

10-Jan-23

11-Jan-23

12-Jan-23

13-Jan-23

Weekly Average (9-13 Jan 23)

Weekly Change (%)

Source: BBC, KITCO and Bloomberg, 2023
Gold

Gold prices rose by 2.2%, from US$1,845.51 per ounce in the previous week to US$1,886.23
per ounce, during the week ending 13th January 2023. Prices rose as expectations of slower U.S.
interest rate hikes depressed Treasury yields, prompting investors to shift to the non-interest
yielding bullion.

Platinum
During the week ending 13th January 2023, platinum prices increased by 0.5%, from
US$1,075.75 per ounce in the prior week to US$1,081.60 per ounce. The increase was mainly
on account of prospects of a rise in investment demand, coupled with increasing industrial
demand in China.

Palladium
Palladium prices also rose by 0.8%, from US$1,771.63 per ounce in the previous week to
US$1,786.50 per ounce, during the week ending 13th January 2023. The increase was
underpinned by a weaker US dollar, which made dollar denominated commodities less expensive
and appealing to holders of other currencies.

Copper
Copper prices rose to a record high, last witnessed in June 2022, driven by a weaker US dollar
and optimism that the reopening of China would spur the demand for the base metal. Reflecting
these developments, copper prices increased by 8.3% from US$8,353.88 per tonne in the
previous week to US$9,046.40 per tonne, during the week under review.

Nickel
Nickel prices declined by 6.4% to US$27,149.40 per tonne during the week ending 13th January
2023, from US$29,015.25 per tonne in the previous week. This was, in large part, due to
expectations of easing supply tightness, following increased supplies of nickel plates from
Tsingshan Holding Group, a Chinese nickel giant

Brent Crude Oil

Brent crude oil prices rose by 3.8%, from US$79.75 per barrel in the previous week to US$82.75
per barrel, during the week under review. The demand outlook for Brent crude oil was boosted
by the lifting of Covid-19 restrictions in China. In addition, expectations of supply shortages
owing to the impact of sanctions on Russian crude oil also boosted prices.

4. EXCHANGE RATE DEVELOPMENTS


Foreign Exchange Auction
On the foreign exchange auction, the Zimbabwe dollar (ZW$) depreciated by 4.0% against the
US dollar, from an average of ZW$671.4466 per USD$1 in the previous week to ZW$698.5237
per US$1, during the week ending 13th 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 (3-6 Jan 23)

9-Jan-23

10-Jan-23

11-Jan-23

12-Jan-23

13-Jan-23

Weekly Average (9-13 Jan 23)

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

Source: Reserve Bank of Zimbabwe, 2023

Interbank Market
On the Interbank market, the Zimbabwe dollar (ZW$) depreciated by 2.0% against the US dollar,
from ZW$692.8914 per US$1 in the previous week to ZW$707.0124 per US$1, during the
reporting week as shown in Table 6.

Table 6: Interbank Market Exchange Rates2

USD
ZAR
GBP
BWP
EURO

Weekly Average (3-6 Jan 23)

9-Jan-23

10-Jan-23

11-Jan-23

12-Jan-23

13-Jan-23

Weekly Average (9-13 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
The Zimbabwe Stock Exchange (ZSE) traded positively for the second consecutive week. In line
with these developments, the ZSE All Share index added 3.18% to close at 21 981.41 points. All
the major indices registered increases, with the Top 10, Top 15, Medium and Small Cap indices
adding 1.77%, 2.77%, 7.40%, and 0.65% to close at 13 860.17 points, 15 293.15 points, 41
929.97 points and 457 148.25 points, respectively.

The increase in the mainstream index emanated from share price gains for Willdale Limited
(45.86%), Hippo Valley Estates Limited (33.66%), Dairibord Holdings Limited (25.00%), OK
Zimbabwe Limited (24.72%) and Ariston Holdings Limited (23.79%). Partially offsetting the
share price gains were decreases in share prices for Truworths Limited (12.21%), Axia
Corporation Limited (9.18%), First Capital Bank Limited, (8.90%), Star Africa Corporation
Limited (4.40%) and FBC Holdings Limited (2.25%). The resources index3 gained by 0.12% to
close 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)


9-Dec-22

16-Dec-22

23-Dec-22

30-Dec-22

6-Jan-23

13-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 daily market turnover trend for the period from 3rd January 2022 to 13th 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
3.45%, from ZW$2.19 billion in the previous week to ZW$2.27 billion. The cumulative volume
of shares traded declined by 4.38% to 24.44 million, during the week under review, from 25.55
million reported in the preceding week. Figure 4 shows daily market turnover trend for the period
from 3rd January 2022 to 13th January 2023.

Figure 4: Daily Market Turnover


Source: Zimbabwe Stock Exchange, 2023


3-Jan-22
18-Jan-22
2-Feb-22
17-Feb-22
4-Mar-22
19-Mar-22
3-Apr-22
18-Apr-22
3-May-22
18-May-22
2-Jun-22
17-Jun-22
2-Jul-22
17-Jul-22
1-Aug-22
16-Aug-22
31-Aug-22
15-Sep-22
30-Sep-22
15-Oct-22
30-Oct-22
14-Nov-22
29-Nov-22
14-Dec-22
29-Dec-22
13-Jan-23
All Share Index
Top 10 Index


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

Market Capitalization

Reflecting the positive momentum on the ZSE during the week ending 13th January 2023, the
market added ZW$105.90 billion, or 4.70% worth of capitalisation, to close at ZW$2,356.79
billion. Figure 5 shows the evolution of ZSE market capitalization for the period from 3rd January
2022 to 13th 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 also characterised by positive trading, during
the week ending 13th January 2023. As a result, the VFEX All Share index increased by 9.72%
to close at 122.85 points. Cumulatively, the volume of shares traded on the VFEX declined by
19.38% to 0.65 million, during the week under review. In concomitance, the value of shares
traded declined by 14.58% to USD0.22 million in the same week. VFEX market capitalization
stood at US$0.70 billion, an increase of 9.72% or US$0.06 billion, from US$0.64 billion
recorded in the previous week. Figure 6 shows the trend of the VFEX All Share Index (ASI) for
the period from 3rd January 2022 to 13th January 2023.


03-Jan-22
18-Jan-22
02-Feb-22
17-Feb-22
04-Mar-22
19-Mar-22
03-Apr-22
18-Apr-22
03-May-22
18-May-22
02-Jun-22
17-Jun-22
02-Jul-22
17-Jul-22
01-Aug-22
16-Aug-22
31-Aug-22
15-Sep-22
30-Sep-22
15-Oct-22
30-Oct-22
14-Nov-22
29-Nov-22
14-Dec-22
29-Dec-22
13-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 increased from 76,858.94 points in the
previous week to close at 79,333.72.72 points, during the week ending 13th January 2023. JSE
market capitalization also rose by 2.60% to ZAR22.88 trillion, during the same week.

Table 8: Johannesburg Stock Exchange (JSE) Statistics
Period
All Share Index
Market Capitalization
(points)
(ZAR trillions)
9-Dec-22
74,548.14
21.95
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
% Change
3.22
2.60
Source: 2023


03-Jan-22
18-Jan-22
02-Feb-22
17-Feb-22
04-Mar-22
19-Mar-22
03-Apr-22
18-Apr-22
03-May-22
18-May-22
02-Jun-22
17-Jun-22
02-Jul-22
17-Jul-22
01-Aug-22
16-Aug-22
31-Aug-22
15-Sep-22
30-Sep-22
15-Oct-22
30-Oct-22
14-Nov-22
29-Nov-22
14-Dec-22
29-Dec-22
13-Jan-23

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

Source:


RESERVE BANK OF ZIMBABWE


3-Jan-22
18-Jan-22
2-Feb-22
17-Feb-22
4-Mar-22
19-Mar-22
3-Apr-22
18-Apr-22
3-May-22
18-May-22
2-Jun-22
17-Jun-22
2-Jul-22
17-Jul-22
1-Aug-22
16-Aug-22
31-Aug-22
15-Sep-22
30-Sep-22
15-Oct-22
30-Oct-22
14-Nov-22
29-Nov-22
14-Dec-22
29-Dec-22
13-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
2-Dec-22 9-Dec-22 16-Dec-22 13-Jan-23

SMEFX
2-Dec-22 9-Dec-22 16-Dec-22 13-Jan23
Total
Bids (US$ dollars)

Amount Allotted
(US$ dollars)

Highest Rate
678.55

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
2-Dec-22 9-Dec-22 16-Dec-22 13-Jan-23
SMEFX
2-Dec-22 9-Dec-22 16-Dec-22 13-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

786,897.36