Zimbabwe’s banks have experienced a dramatic improvement in fortunes since the adoption of the US dollar by that country.

Deposits have increased rapidly, according to John Legat, CEO of Imara Asset Management Zimbabwe, resulting in a rejuvenation of the credit market. Increases in the levels of deposits and loans have resulted in greater availability of capital for industry.

However, Zimbabwean banks are expected to remain cautious in their lending due to the absence of a Central Bank to function as a lender of last resort.