HARARE – Zimbabwe’s capital markets are likely to see a spike in US dollar-denominated assets after Government last year allowed insurance companies and pension funds to collect premiums and contributions in foreign currency.
And because these entities typically need to grow these funds and pay them back in the currency of collection, demand for foreign currency denominated investment assets in the country will rise.
Statutory Instrument 280 of 2020, which was promulgated last November, amended the Exchange Control (Exclusive Use of Zimbabwe Dollar for Domestic Transactions) Regulations to allow insurance companies and pension funds to transact in foreign currency.
Association of Investment Managers of Zimbabwe chairman Mr Jubelah Magutakuona, said the move will boost the local capital markets.