Look, they have foreign currency which they are not putting into the mainstream banking system. “For all we know this country has so much foreign currency, but it is stashed somewhere for speculative purposes.
It is the man and women in those large offices who are holding on to cash for speculative purposes while the masses suffer. “We want banks that are holding on to cash to inject it into the mainstream economy including foreign currency so that our economy functions again,” the official said.
Banks appetite to lend has been waning since 2015 seen through the declining Loan to Deposit Ratio which has fallen from a high of 86,07% in 2015 before tumbling to 56,64% in 2016.
In December 2017 it took a nosedive to 44,81%, before plunging to 40,71% in December 2018.
Last year it further dropped 36,6%.
However Bankers Association of Zimbabwe president Ralph Watungwa said that it was impossible for banks to stash away cash. “Banks are regulated by the Reserve Bank of Zimbabwe, which has strict reporting requirements. ”
In a state of the nation address on Tuesday morning, President Mnangagwa blamed the opposition and foreign countries for derailing the economic prosperity of the country. “The dark forces inside and outside our borders have thrived too long.
We will defeat and overcome problems facing the economy,” said Mnangagwa. 🔗 Read Full Article
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