- Published on 13 July 2017
Zimbabwean banks face insolvency due to a growing portfolio of Treasury Bills and electronic funds transfer unsupported by cash reserves, the IMF has warned.
T-Bills and real time gross settlement (RTGS) based electronic payments have been used largely to finance an expansionary fiscal policy which critics blame for cash shortages that have wreaked havoc on the economy amid resurgent inflationary pressure. (Financial Gazette)
The increasing portfolio of TBs and overdraft facility of the government at the RBZ fuel broad money supply growth and should be put to check. It is imperative that the policymakers work together to create a conducive environment that attracts investment and nurture positive sentiments.