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THE move by Government to officially recognise the Chinese Yuan as a reserve currency might help ease liquidity challenges the country is facing and help spur industrial revival.
Finance Minister Patrick Chinamasa said in his budget announcement that the country will officially implement the Yuan as a reserve currency for the Central bank. More importantly Zimbabwe will use the yuan to boost trade between the country and China. Although the country predominantly uses the US dollar, this has resulted in liquidity challenges that has reduced competitiveness of local companies.
Meanwhile, the Industrial index lost a further 0.06 points (0,05 percent) to close the week on Friday at 112.16 points. Two counters traded in the negative territory; NMBZ (NMB.zw) shed $0,0037 to trade at $0,0330 and Dairibord (DZL.zw) retreated by $0,0004 to trade at $0,0685 as activity was limited to 9 (nine) counters. There were no movers in Friday’s session.
Week on week the industrial index lost 2.69 points (2,34 percent).
The Mining index went down by 0.79 points (3,26 percent) to close at 23.48 points as Bindura dropped $0,0010 to close at $0,0150.
Falgold, Hwange and RioZim maintained previous price levels at $0,0050, $0,0300 and $0,1040 respectively.
The mining index lost 0.24 points (1,01 percent) compared to week ending 31 December 2015.
Online Reporter
Bongani Ndlovu