“Currency Reforms Paralysing Black Market,” Money Changer

Mutare Illegal foreign currency dealers are reportedly shunning the streets as currency reforms push them out of business. This comes after Finance Minister, Professor Mthuli Ncube introduced Statutory Instrument 142 of 2019 which bans the use of all foreign currencies for domestic transactions and at the same time reintroduced the Zimbabwe dollar.

Speaking to The Manica Post, some anonymous black market foreign currency traders said that they would receive US$10 000 and RTGS$10 000 every day to feed the parallel market but the suppliers have since stopped.

We used to receive large amounts everyday so that we would buy and sell at a profit in the streets. Business was brisk because we would be able to cash in and make 80 percent profit on a daily basis. We would be assured that every day the rate goes up and that would give us every reason to stay in the streets but things have changed ever since the multi-currency system ended on Monday. Most of my colleagues have since disappeared because suppliers from Harare who would give us the cash have since stopped.

The publication also reports that its survey established that money changers were leaving the streets for other businesses including selling second-hand clothes because ‘business’ was no longer viable. Others who worked for bigwigs have since returned the money they had since they are no longer making profits.

Reports suggest that rates have gone down to between 6.1 and 6.5 RTGS dollars for every US dollar.

More: The Manica Post

 

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One Comment on ““Currency Reforms Paralysing Black Market,” Money Changer

  1. But how long? Very soon interbank liquidity will be strained andrates there will runaway whilst people have forex in their houses to sell at whatever rate they like

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