Economics
‘Death Spiral’ Looms for Zimbabwe Economy as Cash Runs Out
- Cash shortage leaves account holders unable to access funds
- Bond notes issuance a disaster, economic professor says
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Zimbabwe’s crippling cash shortage has left a black hole in the financial system that’s crushing the rest of the economy.
“We deposit the cash and it becomes theoretical, ephemeral,” Mohamed Salam, who owns several small stores selling building supplies in Harare, the capital, said in an interview. “My bank balance says it’s there, but it isn’t. I can make payments electronically to local suppliers, but I can’t pay foreign suppliers.”