Government Cracks Down On Illegal Money Changers For Zig Currency Manipulation

Government Cracks Down On Illegal Money Changers For Zig Currency Manipulation

The government has announced plans to deploy law enforcement agents to apprehend illegal money changers who are reportedly manipulating the newly introduced Zimbabwe Gold (ZiG) currency. This action comes even before ZiG notes and coins are officially in circulation.

Surge in Street Exchange Rate

ZiG, already circulating electronically, has witnessed a significant surge in its street exchange rate, reaching approximately ZiG18 per US dollar. This surpasses the official rate set at ZiG13.41 per dollar. Concerns were raised by Members of Parliament regarding the distortion in the value of ZiG currency less than a week after its introduction.

During a summary presentation of the Monetary Policy Statement in Parliament, Finance Minister Ncube assured that the government is committed to clearing money changers from the streets. He emphasized the need to uphold the integrity of the domestic currency and curb illicit activities.

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The new Zig currency
The new zig currency-Image Source@gettyimages

Hon. Togarepi expressed concern over the re-emergence of street traders, highlighting the potential threat to the stability of the domestic currency. Minister Ncube affirmed the government’s readiness to deploy law enforcement agencies swiftly to address the issue.

Strict Enforcement Measures Put In Place

The government intends to conduct a blitz operation to remove street vendors and impose heavy fines on those engaged in parallel market trading. Minister Ncube reiterated that such activities are illegal and emphasized the necessity for law enforcement agencies to take decisive action.

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Assurance on Civil Servants’ Salaries

Minister Ncube assured parliamentarians that civil servants will receive their salaries on time in April. While acknowledging the delay in the availability of hard cash until April 30, he stated that electronic payments into civil servants’ accounts will commence by April 18, considering the operational status of ZiG.

Escalation of Illicit Forex Trading

Illicit foreign exchange trading has proliferated in major urban centres across Zimbabwe, with critics alleging that authorities turn a blind eye to the activities of money changers. Forex dealers often handle large volumes of local currency, which remains scarce within formal banking channels.

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