Latest News Editor's Choice

News / National

NMBZ optimistic on ZiG inflation-easing impact

by Staff reporter
21 May 2024 at 10:33hrs | Views
Listed financial services provider, NMBZ Holdings Limited, has expressed optimism about the inflation-easing impact of the new Zimbabwe Gold (ZiG) currency, following a 209% revenue increase in the first quarter.

On April 5, the Reserve Bank of Zimbabwe introduced the ZiG currency to address the ongoing economic crisis. This new "structured currency" is backed by gold and other precious minerals and will circulate alongside other foreign currencies.

Currently, the ZiG currency trades at a rate of 13:56 against the US dollar, although premiums are slightly higher on the alternative market.

Despite some skepticism in society, NMBZ remains positive about the currency's potential to mitigate inflationary pressures.

"The new monetary framework has re-monetized the local currency and enhanced its functions as a medium of exchange and store of value. The framework is expected to foster stability, simplicity, certainty, and predictability in monetary and financial affairs," NMBZ stated.

"Inflation is expected to stabilize and average between 2 and 5% annually. Key sectors such as mining (gold and other critical minerals) and tourism are expected to drive economic growth in 2024."

The group noted a positive start to the year with several key developments. These include the African Development Bank (AfDB) and NMB Bank Limited signing a US$15 million Trade Finance Transaction Guarantee Facility to unlock trade finance opportunities for SMEs.

NMB Bank Limited successfully migrated to its new core banking system on April 2, 2024, marking a significant milestone in its digital transformation efforts.

The bank also reviewed and revamped its policies and procedures to embed sustainability standards, adopting various benchmarks including the IFC Performance Standards and the GRI framework for reporting.

"In inflation-adjusted terms, the Group generated operating income of ZWL1.3 trillion for the quarter ended March 31, 2024, signifying a 203% increase from the ZWL429 billion recorded for the same period in the previous year," said Mutandwa.

Source - newsday
More on: #Nmbz, #Zig, #Impact