Zimbabwe: CBZ Hails ZiG Quick Fruits, Records Positive Results

Source: allAfrica

Zimbabwe: CBZ Hails ZiG Quick Fruits, Records Positive Results

Listed financial services giant, CBZ Holdings Limited has acknowledged the immediate impact exerted by the recently introduced ZiG currency on the back of sound performance in the just-ended quarter.

On April 5, the Reserve Bank of Zimbabwe introduced a new "structured currency" ZiG to tackle the ongoing economic crisis in the country. The new currency is backed by gold and other precious minerals.

However, despite initial skepticism over the new currency, CBZ Group Chief Governance Officer, Rumbidzayi Jakanani commended the quick fruits realized from the unit's introduction via the RBZ 2024 Monetary Policy Statement which introduced measures aimed at bringing macroeconomic stability, fostering policy predictability.

"Key policy measures included the continuation of the multicurrency system to 2030 in line with Statutory Instrument 218 of 2023, the introduction of the ZiG as a new currency to replace the ZW$, increase in Statutory Reserve Requirements on foreign currency deposits from 15% to 20% and the reduction in the bank policy rate from 130% to 20%.

"These measures, which noticeably brought some stability to the foreign currency market, are expected to be crystallised and buttressed with more fiscal reforms going into the second quarter of 2024," she said.

Jakanani said going forward, the new measures are expected to foster stability on the foreign exchange markets, whilst perpetuating tight liquidity conditions on the money market.

During the quarter that ended March 31 2024, the group posted commendable financial performance, reporting a consolidated inflation-adjusted operating revenue of ZW$1, 42 trillion from a total revenue of ZW$2,38 trillion.

The group said the strong performance was bolstered by a sustained growth in customer numbers, deposits, transactional activity and uptake of the group's comprehensive product range.

The Group's financial position remains strong, as loans and advances to customers closed the period at ZW$7.12 trillion, anchored on a ZW$16.99 trillion customer deposit base. Insurance operations closed with a ZW$108.64 billion insurance liabilities book, supported by ZW$50.09 billion in insurance and reinsurance assets.

"The Board of Directors is confident of the Group's ability to remain a going concern owing to its strong financial performance, financial position and resilient business strategy. The Board has maintained a commitment to evaluate and monitor the Group's ability to remain a going concern," added Jakanani.