Business Maverick

Business Maverick

Zimbabweans Drive Stocks Up 600% in Rush to Dodge Currency Crash

Zimbabweans Drive Stocks Up 600% in Rush to Dodge Currency Crash
A man holds Zimbabwean dollar bond banknotes for an arranged photograph in Bindura, Zimbabwe on Sunday, July 29, 2018. Zimbabweans will elect a new leader on Monday, eight months after Robert Mugabe’s forced resignation, and the contest appears too close to call.

Zimbabweans frantically trying to protect their savings from a collapsing currency have driven the country’s main stock index up by 600% this year. Local traders see more gains in store because there are few alternative assets to buy.

Zimbabweans often turn to equities as a haven from currency meltdowns and episodes of hyperinflation, as happened in June 2020 when the inflation rate reached 837%. The bourse in Harare, the capital, briefly halted trading on Tuesday when the jump in the all-share index breached a 10% limit introduced in April, the second time that’s happened.

“There is some liquidity in the market, that’s why the surge is there,” Thedias Kasaira, managing director at Imara Edwards, the nation’s oldest brokerage, said by phone. “The exchange rate has been going one way and we are expecting this trend to continue.”

Haven Demand | Anxious Zimbabweans are pouring their money into stocks

The local currency slumped almost 60% last month alone. While a US dollar is officially worth 3,673 Zimbabwe dollars, the greenback changes hands on the black market at 3,900 to 4,300, according to, a website that monitors exchange rates.

Read more:

Authorities have tried to curb the currency’s slide, introducing gold coins last year as a store of value and unveiling a bullion-backed digital currency last month. Those assets are more popular with pension fund managers, who are required to include them in their portfolios and who have longer investment timelines than ordinary Zimbabweans, Kasaira said.


Comments - Please in order to comment.

Please peer review 3 community comments before your comment can be posted


This article is free to read.

Sign up for free or sign in to continue reading.

Unlike our competitors, we don’t force you to pay to read the news but we do need your email address to make your experience better.

Nearly there! Create a password to finish signing up with us:

Please enter your password or get a sign in link if you’ve forgotten

Open Sesame! Thanks for signing up.