President Emmerson Mnangagwa has revealed that he will soon introduce tough regulations to deal with foreign currency dealers. Mnangagwa said that he will use the Presidential Powers (Temporary Measures) Act to go after the “currency manipulators” whom he blamed for the economic upheavals. In the few weeks, there has been a shortage of basic goods and fuel which have been precipitated by increases in prices and exchange rates for foreign currency on the black market. The rates started spiralling after policy announcements by Finance Minister Mthuli Ncube and RBZ governor John Mangudya.
Writing in the Sunday Mail, Mnangagwa said
…Not everyone is playing to the rules. Partly because of wanton illicit currency deals happening in what is known as the black market, our economy has been disturbed. We have suffered massive market failures, manifesting in complete collapse of the pricing framework for virtually all commodities, regardless of import component. There has been a run on the bond note…Lately, our law enforcement agencies have been investigating these illicit activities. It has come to light that the money changers we see in street corners are mere “runners” who work for big currency sharks who operate from high places in air-conditioned offices.
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Currently, we have no legislation to deal with currency manipulators. We, therefore, need urgent and robust measures to deal with this financial menace. Of course, I am aware of what else needs to be done by way of policy changes and key adjustments in different sectors and aspects of the economy, including in the public sector…We need to show all offenders that crime does not pay, but that it is painfully paid for by way of compounded grief it visits upon all such offenders.
Accordingly, I have now instructed the Minister of Justice, Legal and Parliamentary Affairs to work closely and expeditiously with the Attorney-General in order to produce a new set of regulations which will be promulgated under temporary law-making powers which I, as President, am allowed by the Constitution. These regulations will remain in force for a statutory period of six months, during which a Bill will have to be processed for consideration by our legislators.
More: Sunday Mail