Week Ending
6th January 2023
Weekly Economic
Highlights
TABLE OF CONTENTS


1.
INTEREST RATES

Deposit Rates

During the week ending 6th January 2023, average minimum and maximum deposits rates for
savings deposits, deposits of 1-month and 3-month tenor remained unchanged, 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 (%)
9-Dec-22

16-Dec-22

23-Dec-22

30-Dec-22

6-Jan-23

Source: Reserve Bank of Zimbabwe, 2023


Lending Rates

Commercial bank minimum and maximum lending rates for both individual and corporate clients
remained unchanged during the week ending 6th January 2023, as shown in Table 2.

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

Individual Clients

Corporate Clients
9-Dec-22

16-Dec-22

23-Dec-22

30-Dec-22

6-Jan-23

Source: Reserve Bank of Zimbabwe, 2023

2.
CLEARING AND SETTLEMENT ACTIVITY

The value of transactions processed through the National Payment Systems (NPS) decreased by
12.30% to ZW$550.01 billion during the week ending 6th January 2023, from ZW$627.16 billion
recorded in the previous week. Real Time Gross Settlement (RTGS) transactions declined by
7.24% to ZW$457.91 billion in the reporting week, from ZW$493.67 billion recorded during the
week ending 30th December 2022. The NPS transaction values were distributed as follows:
RTGS, 83.25%, POS, 9.30%; Mobile, 5.23%; and ATM, 2.21%.


Figure 1: Composition of NPS Transactions in Value Terms

Source: Reserve Bank of Zimbabwe, 2023


During the reporting week, NPS transaction volumes decreased by 11.62% to 13.36 million,
from 15.11 million recorded in the preceding week. Mobile based transactions dominated NPS
transaction volumes at 76.82% of the total, followed by POS, 21.08%; RTGS, 1.23%; and ATM,
0.86%, as shown in Figure 2.


Figure 2: Composition of NPS Transactions in Volume Terms

Source: Reserve Bank of Zimbabwe, 2023

RTGS
83.25%
POS
9.30%
ATM
2.21%
MOBILE
5.23%
RTGS
POS
ATM
MOBILE
RTGS, 1.23%
POS, 21.08%
ATM, 0.86%
MOBILE, 76.82%
RTGS
POS
ATM
MOBILE

Table 3: National Payment Systems Activity
PAYMENT
STREAM
WEEK ENDING
30th December 2022

WEEK ENDING
6th 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

The weekly average prices for palladium, copper, nickel, and crude oil declined during the week
ending 6th January 2023. Gold and platinum prices, however registered increases, during the
same week. The commodity price developments during the week under analysis are shown in
Table 5.

Table 4: Metal and Crude Oil Prices for the week ending 6th January 2023

Gold
Platinum
Palladium
Copper
Nickel
Crude Oil

US$/ounce US$/ounce US$/ounce US$/tonne US$/tonne US$/barrel
Weekly Average (28-30 Dec 22)

3-Jan-23

4-Jan-23

5-Jan-23

6-Jan-23

Weekly Average (3-6 Jan 23)

Weekly Change (%)

Source: BBC, KITCO and Bloomberg, 2023
Gold

During the week ending 6th January 2023, yellow metal prices extended their gains to 6-month
highs, amid a decline in benchmark U.S. Treasury yields. Investor expectations for further
interest rate hikes by the Federal Reserve also supported the increase in prices for the precious
metal. Prices rose by 2.06%, from US$1,808.29 per ounce in the previous week to US$1,845.51
per ounce during the week under review.

Platinum
Platinum prices increased by 3.90%, from US$1,035.33 per ounce in the prior week to
US$1,075.75 per ounce during the week under review. The 2023 first quarter report released by
the World Platinum Investment Council (WPIC) indicated that the global platinum market was
expected to be in deficit. In addition, reports of weakening global mining activity and decreasing
supply surpluses also negatively impacted the price of the precious mineral.

Palladium
Palladium prices declined by 0.70%, from US$1,784.17 per ounce in the prior week to
US$1,771.63 per ounce during the week under analysis. This was on fears of low demand,
induced by the global economic recession.

Copper
During the reporting week, copper prices declined by 0.73%, from US$8,415.33 per tonne in the
previous week to US$8,353.88 per tonne. Prices fell due to a stronger US dollar and deteriorating
demand prospects, attributable to weaker growth in China.

Nickel
The week ending 6th January 2023, saw nickel prices decline by 4.21%, from US$30,289.67 per
tonne in the previous week to US$29,015.25 per tonne. China’s manufacturing sector activity
contracted at a sharper pace in December 2022, as surging Covid-19 infections disrupted
production, negatively impacting the demand for the base metal.

Brent Crude Oil

Crude oil prices declined by 5.28%, from an average of US$84.19 per barrel recorded in the
previous week to US$79.75 per barrel, during the week ending 6th January 2023. Prices declined
amid demand concerns, on the backdrop of surging Covid-19 cases across China, the world’s
second-largest oil consumer after the United States.

4. EXCHANGE RATE DEVELOPMENTS


Foreign Exchange Auction
On the foreign exchange auction, the ZW$/US$ exchange rate remained unchanged at the
previous week level of ZW$671.4466 per US$1, during the week ending 6th January 2023. This
followed the suspension of trading on the foreign exchange auction market during the festive
season. The developments in selected exchange rates are as shown in table 6.

Table 5: Foreign Exchange Auction Exchange Rates1

USD
ZAR
GBP
BWP
EURO

Weekly Average (28-30 Dec 22)

3-Jan-23

4-Jan-23

5-Jan-23

6-Jan-23

Weekly Average (3-6 Jan 23)

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

Source: Reserve Bank of Zimbabwe, 2023

Interbank Market
The Zimbabwe dollar depreciated by 1.6% against the US dollar, from ZW$681.9636 per US$1
in the previous week to ZW$$692.8914 per US$1, as is shown in Table 7.

Table 6: Interbank Market Exchange Rates2

USD
ZAR
GBP
BWP
EURO

Weekly Average (28-30 Dec 22)

3-Jan-23

4-Jan-23

5-Jan-23

6-Jan-23

Weekly Average (3 - 6 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 6th January 2023, the Zimbabwe Stock Exchange (ZSE) was
characterised by bullish sentiment. As a result, the ZSE All Share index added 9.28% to close
at 21 303.44 points. All the major indices registered gains, with the Top 10, Top 15, Medium
and Small Cap indices adding 10.62%, 10.75%, 6.55%, and 0.47% to close at 13 619.02 points,
14 880.87 points, 39 041.60 points and 454 198.51 points, respectively.

The increase in the mainstream index was on the back of share price gains for Zimre Holdings
Limited (49.26%), Ecocash Holdings Zimbabwe Limited (37.53%), Willdale Limited (33.47%),
Econet Wireless Zimbabwe Limited (26.63%) and Zimplow Holdings Limited (16.68%).
Partially offsetting the share price gains were declines in share prices for Mashonaland Holdings
Limited (13.49%), First Mutual Holdings Limited (6.31%), FBC Holdings Limited (3.23%),
Innscor Africa Limited (1.96%) and Ariston Holdings Limited (1.33%). The resources index3,
however, shed 0.08% to close at 25 466.86 points during the week under analysis.

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)


2-Dec-22

9-Dec-22

16-Dec-22

23-Dec-22

30-Dec-22

6-Jan-23

% Change

Source: Zimbabwe Stock Exchange (ZSE), 2023

Figure 3 shows the trend in daily market turnover for the period from 3rd January 2022 to 6th
January 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: Zimbabwe Stock Exchange All Share and Top 10 Indices
Source: Zimbabwe Stock Exchange, 2023

Market Turnover and Volume

Trading activity on the ZSE was concentrated in some selected high value counters. This was
reflected by the 5.17% increase in the cumulative value of shares traded on the local bourse, from
ZW$2.09 billion in the previous week to ZW$2.19 billion, during the week ending 6th January
2023, despite that the cumulative volumes traded were lower than in the previous week. The
cumulative volume of shares traded declined by 85.99% to 25.55 million shares during the week
under review, from 182.46 million reported in the preceding week. Figure 4 shows the trend in
daily market turnover for the period from 3rd January 2022 to 6th January 2023.

Figure 4: Daily Market Turnover


Source: Zimbabwe Stock Exchange, 2023


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


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

Market Capitalization

The local bourse added ZW$206.02 billion or 10.07% worth of capitalisation to close at
ZW$2,250.89 billion, during the reporting week. Figure 5 shows the evolution of the ZSE market
capitalization for the period from 3rd January 2022 to 6th 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 bullish sentiment, during
the week ending 6th January 2023. This resulted in an 18.07% increase in the VFEX All Share
index to 111.96 points. Cumulatively, the volume of shares traded on the VFEX increased by
820.49% to 0.80 million shares, during the week under review. In concomitance, the value of
shares traded increased by 1 134% to US$0.261 million, during the same week. VFEX market
capitalization stood at US$0.64 billion, an increase of 49.78% or US$0.22 billion from US$0.42
billion recorded in the previous week. Figure 6 shows the trend in the VFEX All Share Index
(ASI) for the period from 3rd January 2022 to 6th January 2023.


03-Jan-22
19-Jan-22
04-Feb-22
20-Feb-22
08-Mar-22
24-Mar-22
09-Apr-22
25-Apr-22
11-May-22
27-May-22
12-Jun-22
28-Jun-22
14-Jul-22
30-Jul-22
15-Aug-22
31-Aug-22
16-Sep-22
02-Oct-22
18-Oct-22
03-Nov-22
19-Nov-22
05-Dec-22
21-Dec-22
06-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 73,048.57 points in the
previous week to close at 76,858.94 points, during the week ending 6th January 2023. JSE market
capitalization also rose by 4.50% to ZAR22.30 trillion, during the same week.

Table 8: Johannesburg Stock Exchange (JSE) Statistics
Period
All Share Index
Market Capitalization
(points)
(ZAR trillions)
2-Dec-22
74,322.91
21.87
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
% Change
5.22
4.50
Source: 2023


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

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

Source:


RESERVE BANK OF ZIMBABWE


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

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

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

MAINFX
25-Nov-22 2-Dec-22 9-Dec-22 16-Dec-22

SMEFX
25-Nov-22 2-Dec-22 9-Dec-22 16-Dec-22
Total
Bids (US$ dollars)

Amount Allotted
(US$ dollars)

Highest Rate

678.55

Lowest Bid
Rate

678.55

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, 2022
*The last foreign currency auction for 2022 was on the 13th of December 2022 and the first foreign currency auction for 2023 will be on the 10th
of January 2023
Purpose
MAINFX
25-Nov-22 2-Dec-22 9-Dec-22 16-Dec-22
SMEFX
25-Nov-22 2-Dec-22 9-Dec-22 16-Dec-22
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

1,451,144.38