Zimbabwe Finance Minister Orders Police Crackdown on Black Market Traders Manipulating the New ZiG Currency

Zimbabwe’s Finance Minister Announces Crackdown on Black Market Traders Manipulating the New ZiG Currency

Finance Minister Mthuli Ncube has revealed that law enforcement agents in Zimbabwe will soon conduct a blitz on black market traders who are manipulating the country’s newly introduced structured currency, Zimbabwe Gold (ZiG).

This move comes as part of the government’s efforts to curb runaway inflation and address the distortion of the exchange rate.

Also Read: Reserve Bank Governor Explains Why He Won’t Force Fuel Stations to Accept ZiG

Concerns Raised Over Distorted Market Prior to Introduction of ZiG Currency

The Reserve Bank of Zimbabwe (RBZ) governor, John Mushayavanhu, recently announced the introduction of the Monetary Policy Statement and a new currency backed by gold.

Zimbabwe's Finance Minister Announces Crackdown on Black Market Traders Manipulating the New ZiG Currency — Zimbabwe’s Finance Minister Announces Crackdown on Black Market Traders Manipulating the New ZiG Currency (Image Credit: The Herald)

However, concerns have been raised by legislators that the ZiG currency will enter circulation in a market that is already distorted, potentially impacting its recognition and value. Prices of certain commodities have already surged.

Also Read: ZETDC Completes Transition to ZiG Currency, Resumes Selling Electricity Tokens in Local Currency

Minister Ncube Addresses Parliament, Vows to Tackle Manipulation

While presenting a summary of the Monetary Policy Statement in Parliament, Finance Minister Mthuli Ncube acknowledged that he had received information regarding the manipulation of the new currency by street vendors and money changers.

According to New Zimbabwe, Minister Ncube expressed the government’s commitment to dealing with the issue, urging law enforcement agents to take swift action.

“We are going to send out our law enforcement agency to do their work on a blitz to make sure that these vendors are dealt with. They are cleared off the streets, and heavy fines are imposed on those caught trading in the parallel market.

“It is illegal. Therefore, if it is illegal, the law must take its course. I am also urging our law enforcement agents to move with speed to deal with this matter. We cannot allow it,” Minister Mthuli Ncube said.

He assured legislators that the new currency is already circulating electronically, with ZiG notes and coins set to be released into circulation after April 30.

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