How Zimbabweans Can Benefit From A Depreciating Currency
While the whole country is lamenting the rapid depreciation of the RTGS Dollar, Market analysts at Morgan & Co have said there is room for Zimbabweans to benefit from a weaker currency The Sunday Mail reports.
The analysts reportedly said:
The weaker Zimbabwe dollar poses several implications for Zimbabwe, chief among them being a possible advantage in the region. The AfCFTA that was signed in 2017 by 54 African countries opens Zimbabwe to a US$3,4 trillion market on the continent.
Further, South Africa is Zimbabwe’s major trade partner. The weaker currency will make Zimbabwe’s goods cheaper and push demand for its goods in South Africa and other regional economies with stronger currencies.
We opine that the currency depreciation is set to create a competitive advantage for exporting companies in Zimbabwe. Exporters that we have identified on the Zimbabwe Stock Exchange include Padenga and Ariston. We are also bullish on companies with a regional presence such as Seed-Co International, Delta and Simbisa Brands.
The RTGS when it was introduced in February 2019 traded at $2.5 per US$1 before depreciating to $15.5 per $1 as of Friday 25 October 2019.
More: The Sunday Mail