Im E Ec Ti Es Hit Ith Ne Ta E Ime P3
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IM EECTIES HIT ITH NE TA EIME P3 News Worth Knowing im fuel now more epensive P5 September 17-23, 2020 ESTABISHE 16 @ FingazLive www. ngaz.co.zw acebook The inancial azette 26 ZSE Report The ZSE All Share Index yesterday eased 1,09 percent to close at 1,682,59 points. CBZ lost $2,1207 to settle at $53,8. SeedCo dropped $1,0018 to end Raging at $22,49 and Delta was $0,4701 weak- er at $17,9. Natfoods also decreased by $0,4500 to end at $49 and Innscor traded $0,4365 lower at $20,3. The Top 10 Index dropped 2,16 percent to close at 1,133,53 points. Market capitalisa- tion was at $211 billion while turnover closed at $58 million. Currencies (Bloomberg) % change USD:ZAR 16,3365 -0,72 ◀ ◀ ◀ parallel EUR:USD 1,1862 0,13 GBP:USD 1,2954 0,79 USD: JPY 106,2000 -0,53 ◀ Stock Markets 1 682,59 -1,09 ZSE All Share ◀ Top 10 1 133,53 -2,16 ◀ JSE 56 099,50 -0,06 6 076,60 FTSE 100 ◀ ◀ -0,47 ◀ Dow 27 995,60 0,01 Commodities ◀ ◀ market Gold 1 979,30 0,67 Platinum 976,03 0,29 ◀ Brent Oil 41,50 2,39 Grains (Grain SA) White Maize ZAR 3 230,00 ◀◀ -44 Soya ZAR 7 730,00 -120 Wheat ZAR 4 880,00 -62 ◀ Top Companies waning event on tonight Nelson ahadza market rates, and it is only a few months away ZIMBABWE Stock Exchange Staff riter before we see real change,” Eddie Cross, an (ZSE)-listed top performers will economist and member of the RBZ’s monetary be recognised tonight at The Fi- HE Reserve Bank of Zimbabwe’s (RBZ) policy committee, told The Financial Gazette nancial Gazette’s Top Compa- all-out war against the currency black this week. nies Survey (TCS) awards spon- market — including its recent introduc- He also predicted that forex arbitrage oppor- sored by Old Mutual (OM). T The event will be broadcast tion of a foreign exchange auction system — is tunities within the economy would diminish in increasingly rendering the hitherto riotous paral- the not too distant future, as the parallel market live from 18.30hrs on the paper lel market profi tless, eperts say. has become increasingly less signifi cant. and OM's social media plat- This comes as the trading rates between the Persistence Gwanyanya, another economist, forms. offi cial and parallel markets have narrowed also said the offi cial and black market rates were Renowned agricultural econ- markedly over the past three months, with lit- nearing equilibrium due to RBZ governor John omist, Mandivamba Rukuni, will be the guest of honour at the tle incentive for those requiring “rich local cur- Mangudya’s stellar liquidity control measures. Brent Barber, Invictus Energy esources country manager, says rency pickings” resorting to the risky unoffi cial “We can only expect the parallel market rate the Perthbased rm is making steady progress in preparation for TCS event — launched in 1980 market. to move to this equilibrium rate and ... liquidity sinking its test wells at the Cabora Bassa Proect in Muzaraba — to be held under the theme: “Substantial progress has been made to nar- conditions currently obtaining in the market sup- ni. Invictus has already invested S3,5 million into the proect. ‘Working Towards an Open, row the gap between the offi cial and parallel port this imperative,” he said. To Page 2 Picture reedom Mashava Stable and Inclusive Economy’. Page 2 | September 17-23 2020 The Financial Gazette National News Raging parallel market waning From Page 1 foster price stability and improve mar- “The market is highly regulated and Gwanyanya also said if this tra- ket confidence,” he said. manipulated with high opportunities jectory continued, there should be “a He added that “strategic policies to for arbitrage. convincing rate and price stability” by re-industrialise the economy also rep- "Therefore, the convergence of the year-end — all of which were neces- resent a sustainable formula for curtail- official and parallel market rates will sary to push down the country’s high ing recurring trade deficits and to cool not be genuine,” he said. inflation rate. down or calm the foreign exchange He added that some “indirect He cited the move by the RBZ last market”. rent-seeking opportunities can still be month to introduce the 20 percent for- Bhoroma also argued that gains exploited in value chain processes, eign currency surrender policy — from “realised in subsidising agriculture, for especially in the informal space where local transactions — as key in boosting example, and the ramping up of mining regulation is relatively less and en- forex supplies into the market in the production, can only make economic forceability is difficult”. long run. sense if commodities from these two Hawkins also said if the market was “We do not expect the parallel mar- key sectors are processed locally rather stable for real, individuals and compa- ket to be completely eliminated or rates than exported in raw form, then ulti- nies would have been able to pay their to perfectly converge, but rather that mately be imported as finished prod- offshore debts, as well as import equip- the gap between the parallel and auc- ucts by consumers”. ment more easily. tion rates will narrow significantly. It “Re-industrialisation calls for an “It is impossible to sustain the is comforting that this is happening,” active participation by government and current stability simply because it is a wanyanya said. moving away from mere policy rheto- matter of supply and demand, whereby Victor Bhoroma, an analyst, said in ric to actual implementation of the pol- the demand for the US dollar has out- Jaqueline Mutambara John Bhasera a recent opinion that the newly-found icies with clear milestones in the short, stripped supply,” he said. stability of the Zimbabwean dollar add- medium to long-term,” he said. John Robertson, another doyen ed weight to the importance of an effi- On his part, Enock Rukarwa — an economist, said the black market “re- cient foreign exchange system and the investment analyst — was recently mains in business because demand still 2019/2020 Agric Sector role this played in the economy. quoted in the media saying the stability exceeds supply and the people who “There could be suspicions from of the local currency was principally a cannot qualify to bid at the auctions end certain quarters in the market about the function of a sustainable supply side of up paying more”. independence of the auction-pricing foreign currency on the auction system. “nfortunately, the profit margin Survey out tomorrow mechanism, but there is no doubt that He added that due to the obtaining enjoyed by currency dealers is more it can be sustained, provided there is economic challenges in the form of than the margins for many other busi- HE Financial Gazette and the Zimba- where the country consistently spends in ex- restraint on money supply and policy foreign currency deficits, coupled with nesses, especially as it is ta free. bwe Agricultural Society in partnership cess of US$1 billion on agricultural imports consistency,” he said. a negative external balance position, “So, the imbalance between supply Twith Africa Economic Development annually. Bhoroma also noted that reserve the stability of the Zim dollar was still and demand suits them well and indica- Strategies will this Friday launch the second Some of the limitations include inad- money — which is currency in circu- precarious. tions suggest that they can contrive to edition of the Agricultural Sector Survey equate resources and poor technologies, lation plus commercial bank and other “Structural changes on the produc- keep the black market going. 2012020 at the Meikles otel. which present an opportunity for investment deposits at the RBZ — had dropped tion side of the economy are the only “Inflation is still very high and The Agricultural Sector Survey, which is and requires a positive policy environment significantly in recent months, from fundamentals that can guarantee local that alone says it should weaken fur- sponsored by CBZ Holdings, was launched for financing small-holder agriculture. Z$17 billion in July to Z$12 billion as currency solidity in the medium to long ther. e should see inflation starting last year as an information guide to assist “The significance of this report is centred of ugust. term,” he said. to come down soon because even the stakeholders in the sector by providing au- on the fact that it acts as a dashboard on the “It is worth noting that the echange Veteran economist Antony Haw- black-market rate is relatively more thentic, up-to-date and an in-depth analysis status of Zimbabwe's agricultural sector as rate does not need to be high for it to be kins also said it was “too early to judge stable than it was,” obertson said. of the sector. it provides the state of affairs of the sector deemed genuine. the effectiveness of the RBZ’s strate- See also Pages 3, 5, 7 and 8 Seed-Co and Syngenta have this year and showcases opportunities for investors,” It simply needs to be stable ... to gies”. [email protected] joined as sponsors of the event. engesa said. “Zimbabwe’s agricultural sector is a pri- The event will be held from 10 to 12 mary pillar for economic development hence noon, with 50 people in attendance as per the continued need for a comprehensive Covid-1 safety regulations. study on the country’s agricultural patterns, The permanent secretary in the Ministry which provide investment opportunities that of Lands, Agriculture, Water, Climate and will contribute to economic growth as well Rural Development, Dr John Bhasera will as food security,” Edwin Vengesa, The Fi- be the guest of honour.