Liquidity and Illicit Financial Flows
- Harare Sunday Mail 2016
- 4p.
The article alludes that illicit financial flows and liquidity constraints stand among the foremost encumbrances standing between Zimbabwe and its economic dream. Exporting liquidity through leakages suffocates the economy by reducing aggregate demand thus causing deflation. Financial resource leakage exists with negative effect on national liquidity. Therefore, there is need for transparency, accountability and self-discipline in the utilisation and management of financial resources within a multi-currency system. Illicit financial flows should be viewed in the broadest sense, encompassing smuggling (precious minerals, wildlife trophies, etc), non-remittance of export proceeds, unwarranted remittances and offshore investments. Also in this bracket are tax evasion/avoidance, porous borders, misappropriation of foreign loan receipts, and irregular and/or wasteful expenditure.
