Zimbabwean Banks to face asset quality and liquidity pressures stemming from the impact of COVID-19
Year : Mar 2020
COVID-19 imposed global restrictions may stem foreign currency inflows and GCR expects foreign currency liquidity to decrease. As such, GCR anticipates increased electronic printing of money, to help pay for the medical response, which may further undermine the measures to tackle hyper-inflation and exchange rate volatility.
Severe COVID-19 outbreaks may significantly slow down business in South Africa, thereby, affecting incomes of the employees, especially in non-regulated industries where most Zimbabweans are employed. This in turn will affect the much-needed foreign currency availability. The COVID-19 imposed import restrictions may curb demand for foreign currency which might stabilise the parallel exchange rate