Latest news with #ZiG
Zawya
2 days ago
- Business
- Zawya
Foreign investor appetite for Zimbabwe shares increases in second quarter
Erratic economic policy, high inflation, and currency instability have for years discouraged foreign investment in Zimbabwe. But economic fundamentals are improving and a new gold-backed local currency – the Zimbabwe Gold (ZiG) – has largely held its value this year. Foreign participation on the Zimbabwe Stock Exchange rose to 26.53% in the second quarter from 15.39% in the previous quarter, the newsletter published on Thursday said. Foreign trades jumped 153.94% to ZiG 743.6 million ($27.7 million), up from 292.8 million in Q1. In comparison, foreign investors accounted for over 40% of activity on the ZSE in the early 2010s. Total market turnover on the ZSE increased 53.14% to ZiG 1.49 billion in the quarter, the newsletter said. The total market value, however, fell 3.08% to ZiG 62.64 billion, while the ZSE All Share Index declined 3.91% to close the quarter at 197.23 points. 'The total turnover for the top five companies contributed 86.19% of the equities turnover and 81.01% of the total market turnover for the period under review,' the newsletter said. On the Victoria Falls Stock Exchange, a U.S. dollar-denominated bourse designed to attract offshore capital, turnover reached $15 million in Q2, while market capitalisation slipped to $1.25 billion from $1.29 billion in the previous quarter. Average foreign participation on the exchange stood at 18.73%. An uptick in participation and turnover, alongside governance reforms like the ZSE's self-listing earlier this month could lay the groundwork for further recovery in the second half of the year, analysts said. The International Monetary Fund, meanwhile, has welcomed the ZiG's stability but is urging fiscal and monetary discipline. © Copyright The Zimbabwean. All rights reserved. Provided by SyndiGate Media Inc. (
Business Insider
4 days ago
- Business
- Business Insider
Foreign investor interest in Zimbabwe stocks climbs to multi-year highs
The growth reflects renewed investor interest amid improving economic fundamentals and the relative stability of the Zimbabwe's new gold-backed currency. Foreign participation in Zimbabwe's stock market increased significantly in Q2 2025, reaching 26.53% of total trades. Trades in value terms surged 153.94% to ZiG 743.6 million ($27.7 million) due to investor confidence. Introduction of Zimbabwe's gold-backed currency, ZiG, supported economic stability and trade improvement. Foreign participation in Zimbabwe's stock market climbed sharply in the second quarter of 2025, reflecting renewed investor interest amid improving economic fundamentals and the relative stability of the country's new gold-backed currency. According to the Zimbabwe Stock Exchange (ZSE)'s latest quarterly newsletter, foreign investor activity rose to 26.53% of total trades in Q2, up from 15.39% in the previous quarter. In value terms, foreign trades jumped 153.94% to ZiG 743.6 million ($27.7 million), compared to ZiG 292.8 million in Q1. While these figures remain below the over 40% participation seen in the early 2010s, they mark a notable rebound following years of capital flight driven by policy unpredictability, runaway inflation, and currency instability, according to Reuters. Gold production boosts confidence The renewed interest follows the April launch of the Zimbabwe Gold (ZiG), a new currency backed by gold reserves and other foreign assets, which has so far held its value. The ZiG recorded its biggest single-day gain against the U.S. dollar this year, buoyed by a sharp increase in gold production and stronger foreign currency reserves. The boost comes as gold production rose nearly 46% in the first half of the year to 20,104 kilograms, according to Fidelity Refineries, the country's sole gold refinery. June alone saw a 63% year-on-year surge in output. Authorities now hope the gold-backed ZiG will eventually take over from the US dollar, which has served as a parallel currency in the country since 2009. The International Monetary Fund (IMF) also expressed support for the ZiG, stating that it hopes to see the currency evolve into Zimbabwe's sole legal tender under a potential staff-monitored program. However, the Fund continues to urge authorities to maintain strict fiscal and monetary discipline. Total market turnover on the ZSE increased 53.14% in Q2 to ZiG 1.49 billion, with the top five listed companies accounting for over 86% of equity turnover and 81% of total turnover. Despite the increase in trading activity, the total market value dipped 3.08% to ZiG 62.64 billion, and the ZSE All Share Index fell 3.91% to close the quarter at 197.23 points. Meanwhile, on the Victoria Falls Stock Exchange (VFEX), a U.S. dollar-denominated bourse designed to attract offshore capital, turnover reached $15 million during the quarter. However, market capitalisation edged down to $1.25 billion from $1.29 billion in Q1. Average foreign participation on the VFEX stood at 18.73%.
Business Insider
09-07-2025
- Business
- Business Insider
Gold and forex reserves supporting Zimbabwe's ZiG hit all-time high
Gold and foreign-currency reserves supporting Zimbabwe's bullion-backed currency, the ZiG (Zimbabwe Gold), hit a record high in June, according to the central bank. Zimbabwe's central bank reported record-high gold and foreign currency reserves, reaching $731 million in June. The ZiG currency experienced its largest single-day gain against the U.S. dollar due to increased gold production and reserves. The ZiG was introduced to replace the defunct Zimbabwean dollar, addressing past economic instability caused by previous currency collapses. Gold and foreign-currency reserves supporting Zimbabwe's bullion-backed currency, the ZiG (Zimbabwe Gold), hit a record high in June, according to the central bank. The reserves rose to $731 million last month, up from $639 million in May and significantly higher than the $276 million reported in April 2023, when the ZiG was first introduced. The update was shared in a statement released by the central bank on Wednesday. This week, Zimbabwe's gold-backed currency, the ZiG, recorded its biggest single-day gain against the U.S. dollar this year, buoyed by a sharp increase in gold production and stronger foreign currency reserves. A new chapter after currency failures Years of economic mismanagement have led to the collapse of five previous attempts to establish a stable currency in Zimbabwe, according to Bloomberg. The ZiG, introduced to replace the defunct Zimbabwean dollar, which had plummeted in value, is the latest effort. This increase in bullion output has helped triple Zimbabwe's foreign reserves, offering a much-needed buffer for the country's fledgling currency and economy. The Reserve Bank of Zimbabwe last month reported that it now holds 3.4 tons of gold in its reserves, more than double the 1.5 tons it had in storage when the ZiG currency was first introduced in April last year. Authorities now hope the gold-backed ZiG will eventually take over from the US dollar, which has served as a parallel currency in the country since 2009. The International Monetary Fund (IMF) also expressed support for the ZiG, stating that it hopes to see the currency evolve into Zimbabwe's sole legal tender under a potential staff-monitored program.
Bloomberg
09-07-2025
- Business
- Bloomberg
Zimbabwe Currency Reserves Backing ZiG Climb to Record
Gold and foreign-currency reserves backing Zimbabwe's bullion-linked monetary unit rose to a record in June, the central bank said. The reserves climbed to $731 million from $639 million in May and $276 million in April last year, when the nation introduced Zimbabwe Gold, the currency known as the ZiG, the central bank said in a statement Wednesday.
Business Insider
05-07-2025
- Business
- Business Insider
Zimbabwe's ZiG posts biggest gain yet on soaring gold reserves
Zimbabwe's gold-backed currency, the ZiG, recorded its biggest single-day gain against the U.S. dollar this year. Zimbabwe's gold-backed currency, the ZiG, has seen its largest single-day gain against the US dollar this year by 0.2%, trading at 26.89 per dollar. This appreciation is supported by a 46% increase in gold production in the first half of the year, with 20,104 kilograms produced. This surge in gold output has significantly increased Zimbabwe's foreign reserves, enhancing the financial stability of the ZiG. Zimbabwe's gold-backed currency, the ZiG, recorded its biggest single-day gain against the U.S. dollar this year, buoyed by a sharp increase in gold production and stronger foreign currency reserves. The ZiG appreciated by 0.2% on Friday, trading at 26.89 per dollar, according to data published on the Reserve Bank of Zimbabwe's website. It marked only the 12th time the currency has strengthened against the dollar in 2025, according to Bloomberg. The boost comes as gold production rose nearly 46% in the first half of the year to 20,104 kilograms, according to Fidelity Refineries, the country's sole gold refinery. June alone saw a 63% year-on-year surge in output. This increase in bullion output has helped triple Zimbabwe's foreign reserves, offering a much-needed buffer for the country's fledgling currency and economy, the central bank said. The Reserve Bank of Zimbabwe last month reported that it now holds 3.4 tons of gold in its reserves, more than double the 1.5 tons it had in storage when the ZiG currency was first introduced in April last year. IMF expresses cautious optimism Last month, the International Monetary Fund (IMF) expressed support for the ZiG, stating that it hopes to see the currency evolve into Zimbabwe's sole legal tender under a potential staff-monitored program. The currency is Zimbabwe's sixth attempt in 15 years to establish a stable local currency, and it is backed by 2.5 tons of gold and $100 million in foreign currency reserves held by the central bank. However, despite its gold backing, the ZiG has struggled to win the public's trust.
