Dr Mangudya’s continental rating falters, slides to D grade

An international rating institution, Global Finance Magazine ’s Central Banker Report Cards 2022, gave the Reserve Bank of Zimbabwe (RBZ) Governor, Dr John Mangudya, a D+ grade, making him one of the lowest-ranked in the Middle East and Africa Table.

Published annually since 1994, the report gives grades to central bank governors, taking into account successes in areas including inflation control, economic growth goals, currency stability, and interest rate management.

The report’s grades range from A-to-F scales. An “A” grade rates an excellent performance, while an “F” rating represents a miserable failure.

In 2021, Mangudya had a C-grade.

“After a brief lull, Zimbabwe’s economy is back in crisis mode; and Governor John Mangudya and the RBZ have their hands full dealing with hyperinflation, free-falling local currency, a chaotic forex market and a banking sector in which loan facilities are abused by business,” reads the report.

In order to combat inflation and speculative borrowing, the RBZ has turned to drastic and occasionally unconventional measures, such as the introduction of gold coins that are intended to absorb liquidity and serve as a store of value in a nation where the local currency is theoretically not usable. Even further, RBZ temporarily stopped bank lending.

Global Finance gave the South African central bank governor an A for 2022.

Meanwhile at the close of trade, the mainstream ZSE All Share Index gained 1,25 percent to close at 14 066.62 points. The market cap increased by $2.01 billion to $1,7 trillion.

Seventeen companies saw gains in their share prices, while nine closed negative.

Gains in CFI and Simbisa lifted the Top 10 Index as it was 1,55 percent up to 8 332.88 points.

The gainers’ chart was led by CFI as it closed at $411.25, a 15 percent gain. Simbisa rose 9,37 percent to $197.00.

The Medium Cap Index recovered 0,63 percent to close at 30 684.80 points. ZBFH increased 14,96 percent to $106.40.FMP added 13,05 percent to make $6.86. Zimplow gained 10,45 percent to $14.49.

On the flip side, Mash Holdings fell 4,76 percent to $7.53. Starafrica lost 3,46 percent to $1.70 and First Capital Bank was down 3,18 percent to end at $9.02.

The Small Cap Index was off 1,30 percent to 478 905.34 points. Atop the losers’ chart was GB Holdings with a 6,90 percent drop to $1.84 per share. Zimpapers lost 3,58 percent of its share price, dropping to $2.89 at the close of trading.

Turnover rose 236,97 percent to $387.6 million.

With regards to the value of traded stocks, Econet took the lead among the top five performers, flanked by Innscor, Simbisa, NatFoods and Delta.

In the derivatives market, the Datvest Modified Consumer Staples ETF gained 0,03 percent to $1.7330 while the OM ZSE Top-10 ETF rose 0,77 percent to $5.2748.

On the downside, the Morgan & Co Made in Zim lost 0,05 percent to $1.1500 while the Morgan & Co Multi-Sector was lower by 0,51 percent to $23.4945. Cass Saddle Agric ETF was flat at $2.0000.

Oil prices rose slightly on Wednesday amid plenty of caution as bullish signals such as falling US crude stocks and a generally undersupplied market were countered by bearish factors such as uncertain Chinese demand growth and falling gas prices.

Brent crude futures for December settlement rose US$60c, or 0,7 percent, to US$90.63 a barrel as Brent hit a low of US$89.32.

US West Texas Intermediate crude for November delivery, expiring on Thursday, was at US$83.59 a barrel, up US$77c, or 0,9 percent. The December contract was at US$82.73, up US$66c, or 0,8 percent.

The gold market is not seeing much reaction to the latest economic data as it sees solid technical selling pressure. December gold futures last traded at US$1 638.40 an ounce, down 1 percent on the day.ebsunessweekly