A look at Zimbabwe’s cash crisis-Article by Equity Axis Zimbabwe has been plagued by an acute cash shortage and a forex liquidity crisis which is threatening economic stability and growth prospects. In simple terms there is no sufficient cash at banks for customers to transact. Nostros which hold forex on behalf of local depositors transacting outside the country have grossly depleted. Notes, either in USD or bond (Zimbabwe surrogate currency) have vanished from the system as scarcity gave room for arbitrage and speculative activities. Concurrently deposits levels has soared and with the variable’s surge a resultant hard cash gap has emerged in the market which has degenerated into a crisis. This reports looks at the mechanics of the cash crisis highlighting the possible drivers in our view. An overview of the numbers provided by the RBZ shows that on dollarizing in 2009, Zimbabwe had only $1.2 billion in total deposits with ban At that respective ...
Comments
Post a Comment