Vol. 25 No. 51


Week Ending
21st December 2023
Weekly Economic
Highlights
TABLE OF CONTENTS


INTERNATIONAL COMMODITY PRICE
5.

1. OVERVIEW

This report provides an analysis of the developments in money market interest rates and National
Payment Systems transactions during the week ending 21st 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 and foreign currency deposits
remained unchanged during the week under review. Deposit rates for 3-month, 6-month and 12month tenors remained at the previous week’s levels. The deposit rates for 1-month maximum
tenor, however, marginally declined in both local and foreign currency during the period under
review.

International commodity prices for gold, platinum, copper, nickel and crude oil firmed while
palladium and lithium prices declined during the week ending 21st December 2023.

The aggregate value of transactions processed through the National Payment Systems platforms
amounted to ZW$8.29 trillion, a decrease of 0.26% from the previous week. The Real Time
Gross Settlement (RTGS) system constituted 83.91% of the total NPS values. The Zimbabwe
Stock Exchange (ZSE) and the Victoria Falls Stock Exchange (VFEX) were bullish during the
week under analysis.
2. INTEREST RATES

Local Currency (ZW$) Deposit Rates.

During the week ending 21st December 2023, deposit rates for all tenors remained largely
unchanged, save for the maximum deposit rates for deposits of 1-month tenor which registered
a decline during the same week. Commercial banks continued to offer higher deposit rates for
long term deposits as banks sought to encourage longer-term deposits. Average commercial bank
deposit 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
(%)
24-Nov-23

1-Dec-23

8-Dec-23

15-Dec-23

21-Dec-23

Source: Reserve Bank of Zimbabwe, 2023


Local Currency (ZW$) Lending Rates
Commercial bank minimum lending rates for individual clients increased while those for
corporate clients softened during the week of analysis. On the contrary, maximum lending rates
for individuals declined during the week ending 21st December 2023, while maximum lending
rates for corporate clients, increased during the same period, as shown in Table 2.

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

Individual Clients

Corporate Clients
24-Nov-23

1-Dec-23

8-Dec-23

15-Dec-23

21-Dec-23

Source: Reserve Bank of Zimbabwe, 2023


Foreign Currency (USD) Deposit Rates
Average minimum and maximum savings deposit rates quoted by commercial banks were
unchanged during the week ending 21st December 2023. Maximum deposit rates for deposits of
1-month, 3-month, 6-month and 12-month tenors registered declines, while minimum deposit
rates for the same deposits increased during the week under review 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
(%)
24-Nov-23

1-Dec-23

8-Dec-23

15-Dec-23

21-Dec-23

Source: Reserve Bank of Zimbabwe, 2023


Foreign Currency (USD) Lending Rates
During the week under analysis, minimum foreign currency lending rates for individual clients
softened, while maximum lending rates for individuals marginally increased. Minimum foreign
currency lending rates for corporate clients registered marginal increases, while maximum
lending rates for the same category registered declines during the week under review.

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

21-Dec-23

Source: Reserve Bank of Zimbabwe, 2023

3. CLEARING AND SETTLEMENT ACTIVITY

The aggregate value of transactions processed through the National Payment Systems platforms
amounted to ZW$8.29 trillion, a decrease of 0.26%, from the previous week’s level of ZW$8.32
trillion.

In value terms, the distribution of NPS transactions were as follows: Real Time Gross Settlement
(RTGS) system constituted 83.91%, Mobile, 4.87%, Point of Sale (POS), 6.10% and Automated
Teller Machines (ATM), 5.13%.

Figure 1: Composition of NPS Transactions in Value Terms

Source: Reserve Bank of Zimbabwe, 2023

The volume of transactions processed through the NPS increased by 17.22% to close at 13.69
million. This was, underpinned by an increase in POS, ATM and Mobile transaction volumes.
NPS transaction volumes were distributed as follows: Mobile,77.44%; POS, 18.47%; RTGS,
2.35% and ATM, 1.74%, as shown in Figure 2.

Figure 2: Composition of NPS Transactions in Volume Terms

Source: Reserve Bank of Zimbabwe, 2023


RTGS
83.91%
POS
6.10%
ATM
5.13%
MOBILE
4.87%
RTGS
POS
ATM
MOBILE
RTGS, 2.35%
POS, 18.47%
ATM, 1.74%
MOBILE, 77.44%
RTGS
POS
ATM
MOBILE

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

WEEK ENDING
21 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

International commodity prices for gold, platinum, copper, nickel and crude oil firmed during
the week ending 21st December 2023. Palladium and lithium prices, however, declined during
the same week. Table 6 shows commodity price developments during the week under analysis.

Table 6: Metal and Crude Oil Prices for the week ending 21st 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
(11-15 Dec)

18-Dec

19-Dec

20-Dec

21-Dec

Weekly Average
(18 - 21 Dec)

Weekly Change

Source: BBC, KITCO and Bloomberg 2023

Precious Metals

In the week under review, average prices for platinum and gold rose by 2.93% and 1.43%,
respectively, while those for lithium and palladium fell by 4.24% and 0.72%, in that order, as
shown in Table 6. The increase in gold and platinum prices was underpinned by a softening US
dollar amid rising expectations that the Federal Reserve would begin lowering interest rates in

early 2024. The average price for palladium, however, declined, in part, following continued
pressure on cutting down on carbon emissions from cars with internal combustion engines.
Figure 3 shows the trend in precious metal prices for the period from 18th December 2023 to 21st
December 2023.

Figure 3: Weekly Precious Metals Price Developments (18th – 21st December 2023)


Source: Kitco,2023

Source: Kitco,2023

Source: Kitco,2023

Source: London Metal Exchange,2023


18-Dec
19-Dec
20-Dec
21-Dec
Gold

1,000
18-Dec
19-Dec
20-Dec
21-Dec
US$/ounce
Platinum
Platinum
Linear (Platinum)

18-Dec 19-Dec 20-Dec 21-Dec
US$/ ounce
Palladium
Palladium
Linear (Palladium)

18-Dec
19-Dec
20-Dec
21-Dec
US$/tonne
Lithium Hydroxide
Lithium Hydroxide
Linear (Lithium Hydroxide)

Base Metals and Brent Crude Oil
Copper prices increased by 1.68% during the reporting week, underpinned by the U.S. Federal
Reserve's recent dovish monetary policy tilt, coupled with the softening of the US dollar.
Similarly, nickel prices marginally increased by 0.36%, amid market caution ahead of the release
of key US inflation data. Crude oil prices increased by 4.27%, on the back of continued tensions
in the Middle East following attacks on ships in the Red Sea by Houthi rebels and the decision
by Angola to leave the OPEC group. The price trends for base metals and Brent crude oil for the
period from 18th December 2023 to 21st December 2023, are shown in Figure 4.

Figure 4: Daily commodity price developments for copper, nickel, and Brent crude oil
(18th – 21st December 2023)

Source: London Metal Exchange,2023

Source: London Metal Exchange,2023

17-Dec
18-Dec
19-Dec
20-Dec
21-Dec
US$/tonne
15-Dec
18-Dec
19-Dec
20-Dec
21-Dec
Copper

Copper

17-Dec
18-Dec
19-Dec
20-Dec
21-Dec
US$/tonne
15-Dec
18-Dec
19-Dec
20-Dec
21-Dec
Nickel

Nickel

Source: BBC,2023


Exchange Rate Developments

Interbank Market

During the week under analysis, the Zimbabwe dollar (ZW$) depreciated by 0.7% against the
US dollar on the interbank market. The average exchange rate moved from ZW$5,881.11 per
US$1 during the week ending 15 December 2023 to ZW$5,924.96 per US$1, during the
reporting week, as shown in Table 7.

Table 7: Selected Exchange Rates (ZW$ per unit of foreign currency)

USD
ZAR
GBP
BWP
EURO
Weekly Average
(11– 15 Dec)

18-Dec

19-Dec

20-Dec

21-Dec

Weekly Average
(18 – 21 Dec)

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

Source: Reserve Bank of Zimbabwe, 2023


17-Dec
18-Dec
19-Dec
20-Dec
21-Dec
US$/barrel
15-Dec
18-Dec
19-Dec
20-Dec
21-Dec
Brent crude oil

Brent crude oil

5. EQUITY MARKETS


The Zimbabwe Stock Exchange (ZSE) and the Victoria Falls Stock Exchange (VFEX) were
bullish during the week under analysis. Consequently, the ZSE and VFEX All Share indices
gained 3.09% and 1.64% to close the week under review at 198 791.48 points and 70.36 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)
01-Dec-23

08-Dec-23

15-Dec-23

21-Dec-23

% Change


Source, Zimbabwe Stock Exchange, 2023


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

21-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.

Zimbabwe Stock Exchange (ZSE) Developments

The Top 10, Top 15 and Medium Cap gained 4.58%, 4.25% and 0.34% to close at 83 719.76,
114 013.74 and 892 907.22 points respectively, while the Small Cap counter remained
unchanged at 5 344 423.84.

The resource index was 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 22nd
December 2022 to 21st December 2023.

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

Source: Zimbabwe Stock Exchange, 2023

Share price gains in Ecocash Holdings Zimbabwe Limited (29.84%), CBZ Holdings Limited
(15.00%), CFI Holdings Limited (15.00%), Cafca Limited (14.97%) and Ariston Holdings
Limited (12.50%) supported the increase in the mainstream index.

Losses were registered in share prices of Meikles Limited (6.92%), Willdale Limited (5.56%),
First Mutual Holdings Limited (4.76), Dairiboard Holdings Limited (2.76%) and FBC Holdings
Limited (2.14%%).


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

Market Turnover
During the week ending 21st December 2023, the cumulative volume of shares traded declined
by 30.85% to close at 10 million shares, from 15 million shares registered in the previous week.
The value of shares traded, however, increased by 12.63% to close at ZW$12.78 billion.

Figure 6 shows the trend in daily market turnover for the period 22nd December 2022 to
21st December 2023.

Figure 6: Market Turnover
Source: Zimbabwe Stock Exchange, 2023


Market Capitalization

The ZSE market capitalisation increased by 2.94% to close at ZW$15 764.91 billion during the
period of analysis reflecting the increase in the stock market price index.

Figure 7 shows the evolution of market capitalization for the period 23rd December 2022 to 21st
December 2023.


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

Figure 7: Market Capitalization

Source: Zimbabwe Stock Exchange, 2023

Victoria Falls Stock Exchange (VFEX) Developments

The VFEX mainstream index added 1.64% during the week under review in part on account of
share price increases in Padenga Holdings Limited (4.96%), Innscor Africa Limited (4.51%),
Simbisa Brands Limited (4.29%) and African Sun Limited (1.20%).

Partially offsetting these gains were losses in the share prices of First Capital Bank Limited
(5.00%), Seed Co International Vx (3.28%) and Axia Corporation Limited (0.14)%.

VFEX Market Turnover

The VFEX volume and value of shares increased by 13.10% and 25.85% to close at 3.06 million
shares and US$1.15 million, respectively. This compares to 2.70 million shares and US$0.91
million registered in the previous week.


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

VFEX Market Capitalization
Reflecting positive trading activity on the VFEX, the bourse improved by 1.64% worth of
capitalization to close at US$1.20 billion compared to US$1.18 billion, recorded in the prior
week.

Figure 8 shows the trend in the VFEX All Share Index (ASI) for the period from 22nd December
2022 to 21st December 2023.

Figure 8: VFEX All Share Index

Source: Victoria Falls Stock Exchange (VFEX), 2023


RESERVE BANK OF ZIMBABWE

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


APPENDIX 1: FOREIGN EXCHANGE AUCTION RESULTS FOR WHOLESALEFX2


Source: Reserve Bank of Zimbabwe, 2023

*The last Foreign Exchange Auction for 2023 was conducted on 12 December 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