Zimbabwe has adopted its harshest solution yet to halt a currency crisis -- ordering banks to immediately stop all lending.
The southern African nation’s President, Emmerson Mnangagwa, blames banks for flooding the financial system with excess funds, fueling a currency slide and inflation. The weekend directive to freeze loans is the latest in a series of orders since 2020 aimed at supporting the local unit and thwarting a flourishing black market. The Zimbabwe dollar, reintroduced in February 2019, has crashed 61% this year, making it the worst performing currency in the world.
