In Zimbabwe the threat of a new US-dollar cash crunch looms large, with the demand for greenbacks set to outstrip a supply weighed down by declining inflows, the country’s largest independent asset manager said.
Imara Asset Management said a shrinking formal sector and falling tax revenue amid a surge in government expenditures and a decline in global commodity prices could spark the next currency crisis. US dollars account for 80% of all transactions in the southern African nation and are used to pay for essential goods including food, fuel and medicine.
