Zimbabwe banks seek Chinese help

The cash crunch that has wreaked havoc in Zimbabwe's crisis-torn economy could worsen after the Germany-headquartered Commerzbank cut off ties with local financial institutions due to sanctions placed on the country by the United States government.

This development has largely affected US dollar transactions, with reports suggesting that many businesses and individuals were finding it difficult to move greenbacks in and out of Zimbabwe.

Commerzbank's decision has also affected offshore cash holdings for most banks, whose situation has not been helped by the worsening liquidity crisis afflicting the country.

It is proving to be even more difficult for companies trying to move cash outside the country for imports and other payment obligations, as they are being turned away by banks despite having their own cash for the payments.