Dollar shortages threaten Zim businesses

HARARE – Zimbabwean businesses are seeing tumbling output because of an acute dollar shortage that has forced banks to delay processing payments for imports of spare parts and supplies, a KPMG poll found.

This comes as cash in circulation has dwindled to 1,4 percent of total deposits in the banking sector, according Reserve Bank of Zimbabwe deputy governor Kupukile Mlambo.

At least 76 percent of businesses said the shortages of bank notes had adversely affected their businesses, 17 percent said the impact has been moderate, two percent felt no impact, and 6 percent experienced a positive impact.

The central bank says cash shortages are caused by the illegal export of dollars and lower exports at a time when Zimbabwe’s imports are growing, resulting in a widening trade deficit.

[GoogleAd]