Zim banks have created 800 million Electronic US dollars!

FCA deposits of 1.8 bn USD
Zim Commercial Banks Balance Sheet in ZWL
April 2022 real USDs in the banking system
USD 800m was created domestically.
Alternative calc, 721m locally created USD dollars.
Balances that Commercial Banks hold at RBZ

How big is the Problem?

We have US$800m worth of locally-created US dollar deposits out of a total of US$1.8 bn. This means 45% of FCA deposits are locally-created dollars.

Is this really a problem?

Yes, it is a problem that commercial banks have to grapple with. Economic units (individuals, corporates, gvt, etc) say they hold so much Foreign Currency at the banks, and the banks simply do not have that much. Of course, at some point, these economic units have to face reality.

  1. Failure to sufficiently fund the Nostro Account.
  2. Failure to sufficiently honor USD cash withdrawals.

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Ryan Gosha

Ryan Gosha

Financial Analyst, Cloud Accountant, Citizen Data Scientist, FPL Boss