'Zimbabwe's liquidity to improve on strong rand'

'Zimbabwe's liquidity to improve on strong rand'
Published: 22 February 2018
ZIMBABWE'S balance of payments is anticipated to improve on the back of a strong South African rand and weakening US dollar, as the gap between virtual money and hard cash is set to narrow, a United Kingdom-based think-tank has predicted.

Renaissance Capital Global chief economist, Charlie Robertson, said Zimbabwe was set to become the biggest beneficiary of the strong rand, which has been appreciating following the swearing in of Cyril Ramaphosa as South Africa's president.

Meanwhile, paralledl market United States dollar premiums are set to stabilise following government intervention to sanitise Real Time Gross Settlement (RTGS) balances with hard cash, a local advisory firm has said.

In a note on the Monetary Policy Statement recently presented by Reserve Bank of Zimbabwe (RBZ) governor, John Mangudya, IH Securities said while government needed to attain a healthier economic position before reintroducing a local currency, liquidity challenges were expected to continue, with cash premiums stabilising in the medium term.
- fingaz
Tags: Liquidity,


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