Zimbabwe to buy, sell shares in foreign currency

Business Top Stories Zimbabwe

By Ndaka Majaka

THE Zimbabwe Stock Exchange (ZSE) says it is in discussions with the Reserve Bank of Zimbabwe and Treasury to establish a multi-currency bourse, which will enable investors to trade in a basket of currencies. 

This means an ordinary investor can purchase and sell shares in foreign currency using their free funds, and companies will raise or receive capital in US dollars. 

At present, the ZSE trades in the local RTGS dollar and has a market capitalisation of RTGS$29,1 billion.

ZSE Chief Executive Mr Justin Bgoni said the market was undervalued. He also said discussions were ongoing to introduce a US Dollar trading platform. 

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Stock-traded counters could price their shares in RTGS$ or foreign currency and investors can then choose which to buy. 

The multi-currency denominated stock exchange is anticipated to help investors preserve the value of stocks.

The Stock Exchange of Mauritius runs a similar model.