Dollar shortages threaten Zim businesses

Source: Dollar shortages threaten Zim businesses – DailyNews Live

Staff Writer  17 July 2017

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

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.