The Role of the Financial Sector in Zimbabwe, Central Banking and its Social and Economic Impacts’

important contributors of private sector credit and therefore highly influential over most areas of economic activity. However, currently they are facing financial constraints, as the Reserve bank cannot perform its function as a lender of last resort due to the phasing out of the Zimbabwean local currency. Commercial banks have in fact changed their loan structure, they are now lending short term loans, just for their survival and to certain credible analysed economic agents. Short term loans are very costly as the interest is very high. They can’t be used for sustainable investment, as capital investment needs to be matched with long term loans. Hence, various organisations are financially