Wednesday, 4 October 2023

An Inpouring Review on the Current Liquidity Crisis in Zimbabwe | Chapter 8 | An Overview on Business, Management and Economics Research Vol. 3

 This study paper tries to examine the reasons behind the liquidity problem that the Zimbabwean frugality is now experiencing. In fiscal economics, a liquidity situation is an acute shortage of liquidity. Liquidity can refer to display liquidity (the ease with which an advantage can be convinced into a liquid medium, e.g. cash), capital liquidity (the ease with which borrowers can acquire external capital), or accounting liquidity (the health of an organization's balance sheet calculated in terms of its cash-like property). Since the advent of the multi-bills system in 2009, that had an impact on the economic incident of Zimbabwe, the liquidity problem has annoyed banks and businesses alike. The study used survey design and scientist-administered questionnaires were used to accumulate data from the accused located in Harare, Bulawayo, Gweru and Masvingo. Out of the 200 questionnaires issued 150 were favorably completed developing in a response rate of 75%. The study also secondhand secondary dossier obtained from government instrumentalities on export and significance performance, fixating on the multi-currency regime (2009-2017). SPSS AMOS was used to test the theory raised and create a path modeling deciding the size and substance of the direct and indirect influence between the prophet variables and the downstream changing. The analysis climaxes the following antecedents as major causes that have an affect the present liquidity catastrophe: public and investor trust, nation risk, embodiment of money, criminal financial flows, and net export conduct. The findings more indicated that the liquidity crisis was not significantly jolted by the regional bank's lack of a lender of last resort position. In order to handle the liquidity question, it is advised that the management concentrate on the aforementioned forerunners.

Author(s) Details:

Banele Dlamini,
Department of Accounting and Finance, Lupane State University, Zimbabwe.

Leonard Mbira,
Department of Accounting and Finance, Lupane State University, Zimbabwe.

Please see the link here: https://stm.bookpi.org/AOBMER-V3/article/view/12005

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