Zimdollar headed towards 15-figure era

Source: Zimdollar headed towards 15-figure era – The Zimbabwe Independent

THE Reserve Bank of Zimbabwe (RBZ) says the value of transactions processed through the national payment systems hit the ZW$112,15 trillion mark during the fourth quarter of 2023, up 33% from the previous quarter.

The central bank handled ZW$240 trillion in transactions overall between the second quarter, which ended on June 30, 2023, and the quarter that ended on December 31, 3023.

The nation may soon be handling transactions worth quadrillions if nothing is done to preserve the local currency, which has lost almost 40% of its value since January of this year.

Zimbabwe’s national payments values bounced back to trillions of dollars in the past year, highlighting how hyperinflation has depreciated the domestic currency.

The last time transactions were valued in trillions was during the 2007/2008 hyperinflationary era, more than a decade ago.

 

 

In its national payments report for the period, the RBZ said the value of electronic transactions processed through the national payment systems in the fourth quarter ending December 31, 2023 increased by 33% to ZW$112,15 trillion from ZW$84,55 trillion recorded in the previous quarter ended September 30, 2023.

Notably, volumes increased by 18% to 198,17 million from 167,41 million during the period under review. Furthermore, the United States dollar real time gross settlement (RTGS) values and volumes were US$6,47 billion and US$1,20 million respectively.

“The value of transactions processed through the RTGS system increased by 28,23% from ZW$54,51 trillion to ZW$69,90 trillion during the fourth quarter ending 31 December 2023.The volume of transactions rose by 0,10% to 2,80 million during the fourth quarter of 2023,” the report reads in part.

 

“The aggregate values of retail transactions increased by 40,67% from ZW$30,04 trillion in September 2023 to ZW$42,26 trillion during the quarter ending 31 December 2023. The retail volumes increased by 18,68% to 195,37 million during the period.”

 

The value of collateral for cheque clearing, ZimSwitch and Central Securities Depository settlement systems increased to ZW$139,84 billion in the quarter under review from ZW$98,12 billion recorded in the previous quarter. The increase, according to the report, was due to a 51% rise in ZimSswitch collateral following the growth in the value of transactions.

The Victoria Falls Stock Exchange foreign currency collateral for the quarter under review stood at US$24 251,47.

“It remained stable and adequately covered the risk levels associated with the platform’s transactional activities,” the report said.

Ordinary point-of-sale population increased to 137 988 from 137 380 during the quarter under review.

There were 8,80 million active mobile financial services subscribers registered in the period under review, an increase of 8,01%. The figure includes the banked subscribers in addition to mobile money users.

COMMENTS

WORDPRESS: 0