At least 76% of businesses that participated in a KPMG poll said that cash shortages currently facing Zimbabwe were negatively affecting their businesses.
The shortages are forcing banks to delay processing payments for the importation of spare supplies resulting into a tumbling output on the remaining businesses. More than a hundred companies closed down last year. 17% of the businesses in the poll said the impact was moderate and 2% felt no impact whilst 6% experienced a positive impact of the shortage according to the Daily News.
Recently, the Steward Bank Chief Executive Officer, Lance Mambondiani said that he did not see any change in the Zimbabwean economic situation up to election time next year.
This week the RBZ Governor, John Mangudya told the Daily News that the Reserve Bank was negotiating with the Afrexim Bank to print more bond notes to boost the country’s low liquidity ratios.
The RBZ had in the past vowed not to print more than $200 million bonds which are backed by a loan from the Afrexim Bank.
“We are currently in negotiations with Afrexim Bank to give us another facility. We have to ensure that whatever we issue as bond notes need to be secured by a foreign currency facility and we will continue with our drip-feeding mechanism,” Mangudya said.
However, the International Monetary Fund (IMF) warned that inflation and inflation-expectations would rise in line with money creation with annual average inflation set to reach between 2% and 3% of bond notes exceed their initial $200 million.
