LISTED financial services provider, NMBZ Holdings Limited has expressed optimism over the new Zimbabwe Gold (ZiG) currency's inflation-easing impact on the back of a 209% revenue increase in the first 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, and will circulate alongside other foreign currencies.
The ZiG currency is currently trading at a rate of 13:56 against US$1 although premiums are slightly higher on the alternative market.
Despite the new currency being met with skepticism by some quarters of the society, NMBZ has expressed optimism on the new currency's potential to ease 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 envisaged to foster stability, simplicity, certainty and predictability in the execution of monetary and financial affairs.
"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," she said.
The group noted that the year started the year on a positive note with a number of developments taking place which include the African Development Bank (AfDB) and the Group's banking subsidiary NMB Bank Limited, signed 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 the 2nd of April 2024 signaling a landmark development as the Bank continues to push for digital transformation on both its front and backend systems.
The bank also reviewed and revamped its policies and procedures to embed sustainability standards over and above adopting a number of standards including the IFC Performance Standards and on reporting, the GRI framework.
"In inflation adjusted terms, the Group generated operating income of ZWL1.3 trillion for the quarter ended 31 March 2024, signifying a 203% increase from the ZWL429 billion recorded for the same period in prior year," said Mutandwa.
