…promises to tighten screws on illegal forex dealers
By Decide Nhendo
Last week Reserve Bank of Zimbabwe Governor Dr John Mushayavanhu promised to continue tightening screws on illegal forex dealers and other rate offenders as the businesses continue to trade at uneven exchange rates.
Speaking at the Zimbabwe National Chamber of Commerce organized breakfast meeting at Urban Lifestyles Hotel in Masvingo, Dr Mushayavanhu encouraged members of the public to report all offenders to the Financial Intelligent Unit (FIU) as the authorities try to tame inflation caused by black market exchange rates of the local currency.
He strongly warned those selling goods and services using the ZiG black market rate, saying those actions were illegal as the law would catch up with them.
“The onus is on the members of the public to report those who are converting the US$ using the ZiG black market rate to the FIU. The businesses doing that are acting illegally and will be heavily fined so much that it will almost be impossible for them to continue,” said Dr Mushayavanhu.
Dr Mushayavanhu expressed confidence in ZiG saying by 2028 the composition of transactions in the economy would be 80 percent ZiG and 20 percent USD as the country moves towards Vision 2030 when it is expected to have fully de-dollarised.
Despite Dr Mushayavanhu’s stern warning, some supermarkets in Masvingo Central Business District (CBD) like SIMRAC were trading at ZiG15 to US$1, Pick n Pay at ZiG 14.50, OK Mart trading at ZiG14.39, OK at ZiG 14.36 and N Richards trading at ZiG14.27.
A few shops like Power Sales and Bhola the Mega Mart only were only using the official 13.56 bank rate.
This uneven distribution of prizes in supermarkets saw Ngwerewere 10kg mealie meal in supermarkets like OK going for US$7.45 which converts to ZiG106.98 using their ZiG14.36 convention rate, in PicknPay Roller Meal was pegged at ZiG 89, Chibataura 10kg was pegged at ZiG 97.09 and in OK Mart better buy 10kg mealie meal was pegged at ZiG101.42.
Most retail outlets that operate in Masvingo CBD are still using US$ and Rand mainly for their transactions but said they were ready to receive the ZiG.
“We are ready to use the local currency with other currencies for trading, but for now we don’t have much confidence in this ZiG,” said one businessman who refused to be named.
Another business person who operates a clothing shop in the CBD said she was afraid to use ZiG because she was not acquainted with how the local currency is to be exchanged since its operation is uneven in the markets and referenced other local currencies that failed like ZWL and bearer cheque.
“I am afraid of encountering losses because if you take a look at the market you can clearly see that most businesses operate using different rates when trading using ZiG. I fear to repeat what happened when we were trading using the bearer cheque,” said the businesswoman.
The ZiG notes were introduced into the market on April 30, to complement the US dollar as well as other foreign currencies in the market and its acceptance across a broad spectrum of the economy is gaining momentum.
