Zimbabwe News Update
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News / NationalVingirai blasts ‘crippled’ financial systemby Staff reporter7 secs ago |0ViewsVeteran banker and Intermarket Holdings founder Nicholas Vingirai has delivered a scathing critique of Zimbabwe’s financial system, warning that regulatory volatility, currency instability, and a decimated deposit base have left banks unable to support industrial growth or earn public trust.Speaking on the sidelines of the In Conversation with Trevor Ideas Festival in Nyanga, Vingirai — one of Zimbabwe’s most influential financiers — said constant shifts in monetary policy and interest rates had destroyed confidence and crippled long-term planning in the banking sector.”If your regulator tweaks or changes interest rates often, you are not going to have direction,” Vingirai said.
“You cannot price your own funding properly because nobody knows what the rate will be tomorrow. The market is not signalling properly as to where interest rates are going.”He warned that any attempt to stabilise the economy must be structured, predictable and sustainable, arguing that abrupt policy reversals have repeatedly undermined businesses and financial institutions.”If it is not sustainable, whatever stabilisation arrangement will change against business any day and businesses won’t survive,” he said.Vingirai, who established Intermarket Holdings (now ZB Financial Holdings Limited), described Zimbabwe’s financial sector as “destroyed,” saying it no longer serves its developmental role.”We have destroyed our financial sector. We do not have a currency.
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