Zimbabwe Business Watch : Week 12
Business is experiencing an accelerated decline in production and its ability to conduct its affairs. Cash, which is necessary to fund fuel imports and, in some cases, purchase foreign currency, is rapidly drying up.
The 10 billion limit on the maximum value of a cheque remains, the RTGS system of electronic money transfer is bogged down and this is exacerbating an already grim situation as cash flow slows.
Along with world prices, fuel is becoming prohibitively expensive and, due to the cash crisis, the problem is compounded to the extent that wide spread shortages are beginning to negatively impact on business practice.
Zimbabwe’s domestic debt reached an all time high of 1.353 QDRLN on February 9 from just over 60.8 TRLN on February 1st. Generating cash to fund the system is becomingly increasingly difficult as weekly deliveries of 150 TRLN will have to increase to well over 300 TRLN within a month.
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