Zimbabwe’s ZiG Wipes Out 330% Stocks Rally

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Bloomberg Nyheter

Zimbabwe Gold,Zimbabwe,Stock Market

(Bloomberg) -- Zimbabwe’s new currency has wiped out a more than 330% gain on the stock market this year, leaving investors dealing with the fallout.Most...

-- Zimbabwe’s new currency has wiped out a more than 330% gain on the stock market this year, leaving investors dealing with the fallout.The Zimbabwe Stock Exchange All Share Index fell 99.95% since the introduction of ZiG, short for Zimbabwe Gold, on April 5. The gold-backed ZiG succeeded the Zimbabwean dollar, which had lost 80% of its value this year.The volume of trades and value of transactions have also plunged as share prices were converted from the old currency to the new.

“Generally, people are also hesitant and don’t understand what the value is in ZiG terms,” he said Monday by phone. Their expectation is that the entire stock market architecture — and not only the stockbroking industry, which relies on market turnover — will suffer. That includes custodians, government taxes and the ZSE company which collects fees and commissions.

 

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