Zimbabwe banks record increase in dollar deposits

Banks in Zimbabwe have recorded a 50 percent increase in U.S. dollar deposits.

It amounts to $450 million in both local and offshore accounts in two weeks.

Zimbabwe is struggling with acute cash shortages, which has forced banks to limit daily withdrawals. U.S. dollar notes have largely disappeared and those holding them are selling the cash at a premium of up to 20 percent. This has affected businesses seeking to import goods.

Last month the International Monetary Fund said bond notes would not solve the country’s problems. The fund is calling for comprehensive reforms.

The Reserve Bank of Zimbabwe had reduced the backlog for foreign payments by half to $185 million. Agriculture and mining are credited with driving economic revival.