The Reserve Bank of Zimbabwe delivered the highly anticipated 2024 Monetary Policy Statement (MPS) amidst a multi-currency system characterized by exchange rate and inflation volatility.
The month of March was characterised by a continued slowdown on the Zimbabwe Stock Exchange. Market capitalisation surged 71% in nominal terms on the bourse. Nevertheless, exchange rate movements outpaced growth of the bourse leading to a 1.25% drop m-o-m in real terms, from US$2.16bn to US$2.13bn.
The operating environment remained fragile encompassed by currency volatility and inflationary pressures. However, the period also saw the extension of the ongoing multi-currency regime to 2030. Despite challenges in the environment, the Group saw positive volumes growth across most segments.
The period under review saw a fluid and challenging environment. Price distortions persisted in the formal sector with less consumer activity recorded in that channel.
Locally, the operating environment during the period under review was characterized by liquidity challenges, exchange rate depreciation, pricing distortions in the formal market and depressed demand, with the distribution business being the most affected. Malawi continued to grapple with foreign currency unavailability whilst the Zambian market experienced a fluctuating exchange rate, resulting in loss of value on overall net assets of the business.
The period under review was characterised by a challenging economic landscape globally, reflecting the adverse effects of heightened geopolitical tensions, concerns about financial sector stability, weakening global growth and increased food insecurity due to climate-related shocks and global supply chain disruptions.
