By Alois Vinga
Africa-Press – Zimbabwe. THE country’s largest banking institution by deposits and assets, CBZ Holdings Limited (CBZHL) has commended monetary authorities for employing bold inflation targeted measures amid setting aside a total US$3 million for dividend payouts.
The ZW$ lost much of its value in the first half of 2023 with exchange rates on the parallel market depreciating to US$1: ZW$80 000 triggering price hikes and panic in the markets.
To curb the influx, authorities enacted a raft of measures which include the increased usage of the ZW$ by allowing payment of taxes, introducing excess liquidity mop up instruments and Gold Backed Digital Tokens (GBDT) all of which easing pressures around the exchange rates.
Presenting performance for the half year period ended June 30 2023, CBZHL group chairman, Marc Holtzman commended the efforts for tackling obtaining problems.
“The Reserve Bank of Zimbabwe (RBZ) continued to align its monetary policy stance to developments in the goods, equities and money markets. The country experienced significant exchange rate depreciation driven by money supply factors, which exerted pass-through inflation to the economy.
“However, the bold policy intervention measures instituted by the Government and the RBZ, for tackling the transitory price and exchange rate volatility, have gone a long in arresting the instabilities and bringing the much-needed normalcy in the price and exchange rate dynamics in domestic markets,” he said.
During the period, the group recorded Profit After Tax of ZW$543 876.5 million and Comprehensive total income of ZW$ 753 708.3 million.
Total deposits amounted to ZW$ 4 527 477.3 million.
“The Board has proposed the declaration of an interim dividend of US$ 3 million or 0.525 cents per share. A separate dividend announcement with record and settlement dates will be published,” Holtzman said.
CBZHL forecasted that core economic sectors are expected to remain strong, providing significant upside potential for the economy with activity expected to remain elevated in the mining sector, particularly precious and battery metals subsectors, thanks to high global demand.
For More News And Analysis About Zimbabwe Follow Africa-Press
