By Beverly Bizeki
Three alleged forex dealers in Masvingo appeared separately before Masvingo Magistrate Elizabeth Hanzie on April 30, 2024, for contravening the exchange control regulations SI 109/1996 under the operation ‘No to illegal foreign currency dealers’ and were remanded in custody to May 14 for continuation of trial.
The three, Moses Garauzive (37), Tendai Mugabe (44), and Wilson Gumepi (48) were arrested separately on April 29 for unlawfully and dealing intentionally in foreign currency without the approval of the central bank, the Reserve Bank of Zimbabwe.
Garauzive was arrested at Belmont Spar Supermarket after being approached by police details while calling out “tinochinja mari nerate yakanaka (we exchange money at a good rate)”. He was found with US$163 and four bank cards.
Mugabe was arrested at Mucheke Rank on the same day under the same circumstances and was found in possession of US$51, R410, and ZWL500 for sale. Gumepi was also arrested at Mucheke Rank while he was displaying US$30 for sale.
Efforts to get statistics of the blitz in Masvingo were futile as the Provincial Police Spokesperson referred questions to the National Police Spokesperson Assistant Commissioner Paul Nyathi who said there were no specific statistics for the provinces the operation was centralized.
“This is a centralized operation being done by the police and the central bank. There is no categorization of provinces,” said Nyathi.
The crackdown on illegal forex dealers started recently after the introduction of the new ZiG currency and a number of these alleged forex dealers have been arrested across the country.
Analysts have however said the clampdown on the illicit forex was not a lasting solution for the ongoing economic crisis. Progressive Teacher’s Union of Zimbabwe (PTUZ) president Dr Takavafira Zhou said the government Shouldwork on building trust among citizens arguing that even the government had no confidence in the new currency.
“The arrest of forex dealers is unfair and ill-conceived and focuses on the symptoms rather than addressing the real problem that has led to their rise. What we need is realist economic and financial prudence based on frugality and thrift rather than political expediency.
“A currency’s acceptability and durability is based on trust and production. Currently, there is no trust in the ZiG currency and no production as Zimbabwe has become a large supermarket for products from outside. A currency cannot be enforced but must earn the trust from the citizens which ZiG has not.
“The streets may be clean but it does not mean the change money members are not there. They have temporarily abandoned the streets and are operating from their backyards. Soon even the police will give up their halfhearted attempts to enforce ZiG because they are also victims of the same currency. ZiG is ill-conceived and the earlier we go back to the basics of using the USD to rekit our industries so that we produce the better. A currency that has been rejected by the very government (in terms of taxes, buying fuel, duty, etc.) that wants citizens to accept it, has no traction. Mai vepi vanobika sadza ravanoti rinonaka ravasingadye,” said Dr Zhou.
The ZiG was introduced on April 8, trading at 13.56 to USD but lost its value on the black market in less than two weeks as the illicit forex dealers were now trading at 20.
Vice President Constantino Chiwenga recently issued a stern warning to illegal forex dealers and said strict measures will be put in place to curb exchange rate manipulation and over 100 people have been arrested so far.
