Zimbabwe Stocks Lose Appeal as ZiG Liquidity Squeeze Deepens
Zimbabwean stocks, once favored by local investors as a hedge against surging inflation and exchange-rate volatility, are losing their appeal.
The central bank's tight monetary policy stance after a 43% devaluation of the ZiG in September has 'arrested price movement' on the Zimbabwe Stock Exchange, according to IH Securities. The all-share index has slumped 21%, compared with a 160% jump before the ZiG, which debuted on April 8 was devalued.
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