Africa-Press – Zimbabwe. Reserve Bank of Zimbabwe (RBZ) Governor, John Mushayavanhu, has defended the police’s “heavy-handedness” in dealing with illegal money changers accused of undemining the new currency, Zimbabwe Gold (ZiG).
Scores of illegal foreign currency traders have been arrested across the country and charged with contravening section 5(1)(a)(ii) of the Exchange Control Act [Chapter 22:05] as read with section 4(1)(a)(1) of the Exchange Control Regulations SI 109 of 1996 “Dealing in foreign currency”.
Responding to questions during a Zimbabwe National Chamber of Commerce breakfast meeting in Mutare on Thursday 25 April, Mushayavanhu said that the law enforcement agents are there to promote the rule of law and order. He said:
But having said that, people are also asking why are the police being heavy-handed in dealing with forex currency traders. From where we sit as a Central Bank, anyone who is trading in forex should have a licence.
The police have to intervene and arrest those committing offences. The police are there to arrest them because it is illegal for them to sell or buy forex without a licence.
You will be arrested if you do that. If you try to sell your tomatoes just outside this hotel, the municipal police will arrest you because that is not acceptable. The same is happening to illegal foreign currency dealers.
The central bank chief also declared that the parallel market will eventually die a natural death when the usage of ZiG increases.
Mushayavanhu, however, conceded that currently 80 per cent of transactions in the country are being done in USD but expects the dominance of foreign currency to diminish in the coming months in line with the de-dollarisation roadmap.
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