The Zimbabwe Stock Exchange (ZSE) will shorten the settlement cycle for equities from T+7 to T+5 beginning 1 April. By 1 July, it intends to shorten the cycle further to T+3, and to T+1 by 1 September.
The change will only affect equities and will apply to both purchases and sales. The settlement cycle of government securities will remain the same.
“The key driver of the ZSE implementing these changes is the adverse effect that the current high rate of inflation is having on investors,” a spokesperson for Standard Bank of South Africa said. “A shortened settlement cycle will reduce the effects of inflation during the settlement cycle.”