THE Reserve Bank of Zimbabwe (RBZ) says it will use various open market operation tools to deal with uneven distribution of money in the economy amid indications 50 percent of total bank deposits are concentrated in the hands of only 200 corporates. Critically, the central bank said doing so was important to counter potential hazards such as speculative currency trading, which have potential and risk of upsetting exchange rate stability and consequently, drive inflation. The bank and Treasury are targeting annual inflation rate of around 50 percent and monthly rate lower than 5 percent by end of this year. The monthly rate for January currently stands at 2,2 percent from 16,55 percent in December 2019. The planned measures come against the backdrop of speculative currency tra...
ZIMBABWE’s Diaspora remittances grew by 2,6 percent to US$635 million in 2019 from US$619 million recorded in 2018, according to the Reserve Bank of Zimbabwe (RBZ). Although the country incurred negative inflows in the first eight months of the year, the month of September marked a positive shift with US$52,5 million flowing in compared to $46,4 million in 2018, which is a 13 percent variance. The positive trajectory was maintained in October and November with December 2019 recording the highest monthly growth of 27 percent to US$67,5 million from US$53 million. International remittances, which comprise transfers by international organisations for humanitarian assistance and the Zimbabwean Diaspora, are one of the critical sources of foreign exchange in the economy. “Diaspora
2020’s Monetary Policy Statement is out now and RBZ has once again discussed what their plans for the local Fintech industry are. Background The focus on Fintech alluded to last September in the mid-term monetary policy. The RBZ decided to create a National Fintech Steering Committee which would provide “policy direction in the Fintech space”. New developments In the most recent Monetary Policy Statement, the RBZ says they’ve come up with a “regulatory sandbox framework” that will be used to connect Fintech’s and financial institutions: Further to the advice in the 2019 Mid Term Monetary Policy Statement, the Bank has embarked on several initiatives to establish the Fintech agenda. The Bank is in the process of finalizing a regulatory sandbox framework. The framework will out
ONE of Government’s main priorities this year is exchange rate stability that Treasury says will be achieved through the Reuters Trading System and keeping an eye on money supply growth, a Cabinet minister has said. This comes after President Mnangagwa, whose administration reintroduced local currency after a 10-year hiatus amid crippling US dollar shortages, said one of the main priorities this year is currency stability. Zimbabwe had used a multi-currency basket since February 2009 after scrapping the local unit after its value had been ravaged by hyperinflation. However, the Zimbabwe dollar has lost significant value against the greenback. Exchange rate fluctuation, since Zimbabwe floated the domestic currency on the interbank market and later adopted a mono currency has bee
FINANCIAL services group, CBZ Holdings, says it will review downwards its Point of Sale (POS) charges following a backlash from its customers. Frustrated consumers took to social media platforms like Twitter to condemn CBZ and other banks for charging a flat $10 Point of Sale (POS) charge, even for transactions less than $10. The giant bank was forced to respond on Twitter and later issued a statement responding to client objections. In its statement, CBZ said it had heard its customers’ concerns over the high charges. “We have taken into consideration your concerns regarding POS charges and are proud to advise that we are in the process of reviewing these downwards,” said CBZ. The financial services group said it will advise the new charges as soon as they are agreed.
NR Barber, a mining firm, is seeking the Constitutional Court (Concourt)’s permission to challenge last month’s Supreme Court ruling which converted United States dollar debts to the Zimdollar at a rate of 1:1 in line with Statutory Instrument 33 of 2019. The company is basing its challenge on its submission that the Statutory Instrument was unconstitutional and that it should have been declared so at the appeal hearing which overturned a previous High Court ruling that debts in US dollars retained their value in that currency. The firm lost its case last month after Zambezi Gas Private Limited, a mining services provider, successfully appealed to overturn the earlier ruling by the High Court, which was in favour of NR Barber. The Supreme Court found that the statutory instrument
On 30 June 2019, the then Steward Bank CEO Lance Mambondiani left the bank abruptly. Sources say Mambondiani was fired although this was denied by him and Steward Bank. Since then, the bank has been coasting along without a substantive chief while board member Kris Chirairo was acting in the role. Today, Steward Bank has confirmed the appointment of Courage Mashavave as the new boss. Yes, this is a name you know: Courage is husband to celebrated gospel singer Fungisayi Zvakavapano Mashavave. Where is he coming from Mashavave is coming from TN Holdings, the former owners of Steward Bank when it was still TN Bank. He is also said to be involved with Strive Masiyiwa’s personal business interests. The job The new CEO takes over a bank that has been more or less in hibernation since
The Reserve Bank of Zimbabwe (RBZ) says it has started working on refining last year’s shambolic tobacco payment modalities to ensure farmers receive 50 percent of their tobacco sales as hard currency. After getting half the money for tobacco crop in US dollars, farmers will then receive the balance in local currency. This comes after most tobacco growers last year got paid the interbank equivalent of their US dollar dues. Farmer associations said members failed to access their US dollar portion, although the policy existed, because of the complex and long processes that were involved before a farmer could eventually get the US dollars. The long process started with an application placed with the merchant, who would send it to TIMB, which would forward the request to the Reserve B
The Zimbabwe Miners Federation (ZMF) is pressing Government for an upward increase of gold foreign currency retention threshold to above 75 percent as part of efforts to incentivise gold producers and encourage to deliver to the national gold buying entity, Fidelity Printers and Refiners. Currently, producers are entitled to a retention threshold of 55 percent of the gold receipts, which miners argue is still low given the obtaining economic challenges that have driven cost of mining through the roof. The sector is capital intensive, requiring foreign currency for procurement of machinery at a time the country’s foreign currency coffers are low. Gold is the country’s top single foreign currency earner ahead of tobacco, and it anchors the country’s economic turnaround strategy th
This season has experienced erratic rainfall patterns in most parts of the country, leading to germination failure and poor performance by many crops. Thus we are running again a column giving farmers advice on how to grow sugar bean, a crop that has potential to perform within a short space of time. Climate change vagaries have prompted the need for farmers to adopt climate smart crops that help mitigate against the effects of climate change. The false start to the season, recurrence of mid-season droughts, heat waves, floods and the premature termination of the rainfall season over the years has seen the need for farmers to diversify cropping programmes in a bid to spread risk and increase chances of increased productivity in their cropping plans. Diversification promotes farm...