The Zimbabwe dollar closed the day in some banks above Z$190m to US$1 from a starting rate of Z$160m set by the Reserve Bank of Zimbabwe (RBZ).
The RBZ floated the Zimbabwe dollar in a bid to obtain foreign currency for food and key agricultural inputs and to end rampant black market currency trading.
Before the move, the official rate had been set at Z$30,000 Zimbabwe dollars to the US dollar, compared with around Z$130m to the US dollar on the black market.
The RBZ last week hiked the cash withdrawal limit for businesses and individuals to Z$5bn. The cheque limit was increased to Z$100bn.
The governor indicated the banking sector was generally stable and resilient despite the difficult operating environment.
Yet more millions a minute for mobiles
Mobile network providers are pushing for a new tariff increase.
Econet Wireless Holdings, NetOne and Telecel Zimbabwe have applied for a 2,900 per cebnt increase that would push the tariffs from the current average of Z$4m a minute to Z$30m.
Boost for platinum mines
Anglo Platinum, the world’s leading platinum producer, is forging ahead with its planned Zimbabwe operations despite political risk and continuing uncertainty in the mining sector.
The company is recruiting for the Unki mine near Shurugwi in the Midlands – a project that has been on the cards for the past few years and which could become Zimbabwe’s second largest platinum mine.
Meanwhile, Implats, the world’s second-biggest producer, is spending about US$360m to expand its Mimosa and Zimplats operations in Zimbabwe. Â
Equities are wise choice, says Kingdom
Kingdom Stockbrokers has said the outlook for the second quarter will largely depend on major policy decisions on interest rates and inflation.
Kingdom said given the continued negative real investment rates emanating from a hyper-inflationary environment and controlled nominal investment rates, non-interest bearing assets such as equities would continue to be the logical investment destination for funds.
KSB said in its report on the second quarter that the inflation outlook remained bleak because of persistent foreign exchange shortages; excessive money supply growth; continued maize and wheat deficits, and a high government budget deficit.
Camec to buy platinum properties
AIM-listed copper and cobalt producer Camec has agreed to buy former Anglo Platinum-owned platinum properties in Zimbabwe through the acquisition of British firm Lefever Finance.
It would pay Meryweather Investments, Lefever’s owner, US$5m along with 215 million new shares, leaving the seller with a 13 per cent holding in Camec, headed by former English cricketer Phil Edmonds.
Lefever owns 60 per cent of Zimbabwean firm Todal Mining, which has the rights to certain platinum concessions in Zimbabwe.
State-owned Zimbabwe Mineral Development Corporation (ZMDC) holds the balance of Lefever.
Post published in: Economy