Zimbabwe’s stock market has grown by 600% since the beginning of the year against the backdrop of rapid inflation and depreciation of the national currency: over the past month, the price of the Zimbabwean dollar has fallen by 60% and the local Central Bank has once again raised its key rate, from 140% to 150%.
The Zimbabwean dollar has lost 60% against the US dollar in the last month. Against the background of the rapid depreciation of the national currency, local residents seek to save their savings and invest them in stocks: the increased interest in the stock market has led to its growth by 600% since the beginning of the year. Bloomberg writes about it.
The Central Bank of Zimbabwe, in an attempt to overcome hyperinflation and prevent the national currency from fully depreciating, on June 6 raised the already highest key rate in the world, from 140% to 150%.
The stock exchange in Zimbabwe’s capital Harare is showing significant growth: The key ZSE All Share Index, which tracks the dynamics of all publicly traded companies, rose 11% on June 7 in the run-up to the negotiation. The capitalization of the entire Zimbabwean stock market has reached almost $2 billion.
Zimbabwe introduced store-of-value gold coins in 2022 and launched a gold-backed digital currency in 2023.
Author:
Kirill Bilyk
Source: RB
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