Zimbabwe Stock Exchange Makes Major Currency Switc...

Zimbabwe Stock Exchange Makes Major Currency Switch

Nyashadzashe Ndoro

The Zimbabwe Stock Exchange Limited and the Zimbabwe Stock Exchange Limited Depository (ZSE Depository) issued separate statements on Monday outlining adjustments to trading and settlements following the Reserve Bank of Zimbabwe’s introduction of a new structured currency, the Zimbabwe Gold.

“Following the pronouncement of the 2024 Monetary Policy Statement by the Reserve Bank of Zimbabwe on 05 April 2024, the Zimbabwe Stock Exchange Limited Depository wishes to advise stakeholders on the following settlement adjustments that will be implemented effective 08 April 2024 in light of the new structured currency named Zimbabwe Gold (ZiG),” the ZSE Depository announced.

The ZSE Depository will convert all outstanding Zimbabwean Dollar settlements as of April 5, 2024, to ZiG at the initial conversion rate of ZiG$1 to ZW$2 498.7242, as prescribed by the RBZ’s operational manual for structured currency.

“The ZSE Depository will send revised settlement schedules to all custodians for trades settling on Monday, 8 April 2024, Tuesday, 9 April 2024, and Wednesday, 10 April 2024 respectively,” the statement added.

All future settlements from April 11, 2024, will be conducted in ZiG, mirroring the trading adjustments on the ZSE which begin on April 8, 2024.

In a separate announcement, the ZSE echoed the Depository’s sentiments, requesting “understanding during this transition period”.

“The trading adjustments on the ZSE will be converted at the initial conversion exchange rate of ZiG1 to ZW$2 498.7242 which is prescribed in the operational manual for structured currency issued by the RBZ on 5 April 2024,” the ZSE stated.

The ZSE outlined several key changes, including the denomination of all share prices in ZiG. “Opening prices for the trading session effective 8 April, 2024 will reflect the ZiG currency. For ease of reference, all prices will be shown in ZiG cents (ZiG price multiplied by 100)," the statement explained.

Furthermore, price sheets and daily market reports will now be presented in ZiG currency, with prices again reflected in ZiG cents for user convenience.

The ZSE announced that all its indices will be rebased to 100 basis points, effective April 8, 2024. “The rebasing is necessary to allow the indices to accurately reflect the performance of the market in the context of the new currency ZiG,” the ZSE concluded.