World Economy

IMF Warns Zimbabwe of Cash Crisis

IMF Warns Zimbabwe of Cash CrisisIMF Warns Zimbabwe of Cash Crisis

The International Monetary Fund has blamed Zimbabwe’s unrelenting cash shortages on government’s runaway spending and a comatose economy, AllAfrica reported. IMF’s outgoing mission chief for Zimbabwe Anna Lucia Coronel, speaking after the fund’s recently concluded country consultations, said the Reserve Bank of Zimbabwe’s cash reserves were critically low. The IMF delegation held consultations with President Robert Mugabe’s chief secretary Misheck Sibanda, Finance and Economic Development minister Patrick Chinamasa and RBZ governor John Mangudya, among other senior government officials. Cash shortages, that began to intensify in 2015, were some of the issues that were discussed at length. “We understand that the dollar holdings of the economy as a whole are low,” Coronel said. “Dollars come to Zimbabwe as a result of export proceeds, remittances, foreign investment, and all other external inflows, and these inflows have been limited.” Furthermore, dollar reserves of the central bank are scarce, and the central bank can only allocate the amount of cash that it has, and it does so as per a priority list.”


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