Government to tighten Forex regulations, Chinamasa

The Zimbabwean Government says it will tighten regulations because the market for foreign exchange is currently “an over liberated”. The country will move to a controlled forex market to curb cash leakages said Patrick Chinamasa the Finance and Economic Development Minister.

The move has been announced as the government prepares to introduce Bond Notes, a local currency that the government says will be pegged to the value of the US dollar.

During Zimbabwe’s hyperinflation period between 2003 and 2009, the country introduced tight exchange regulations which at one point resulted in several business people being arrested or threatened with arrest for “externalising foreign currency”.