FBC Holdings (FBC) says the bulk of its loan book is now denominated in foreign currency due to
increased dollarisation in the economy during the past year.
The rapid depreciation of the Zimbabwe Dollar saw the market lean towards much stable currencies such as the USD. FBC Holdings chairman Herbert Nkala said the group’s loans in 2023 grew to $1,6 trillion from the $764 billion in 2022, attributing the surge to improved demand for foreign currency denominated loans.
“The group’s banking subsidiaries experienced a higher demand for foreign-currency-denominated loans in response to increased usage of multiple currencies for local transactions. The loan book is now predominantly USD-denominated,” he said.