Zimbabwe’s protracted cash shortages were likely driving the Southern African country into the start of a broader basic commodity crisis, despite assurances from the reserve bank chief, according to a report.
The privately-owned Daily News reported that the cash shortages have driven businesses to issue a stern warning about a looming full-blown crisis, similar to the 2008 hyperinflation crisis.
President of the Confederation of Zimbabwe Retailers Denford Mutashu, has urged the newly-elected government to act fast to avoid a basic commodity crisis, the report stated.
“Government should urgently address the foreign currency shortages in the economy as shortages are spreading to other commodities, like cooking oil and beverages. Production in the economy is being threatened by the forex situation, while cost-push price pressures are also mounting,” Mutashu was quoted as saying.
