Black market gives RBZ headaches  

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SHADOWY businesspeople are abusing mobile money platforms to bleed the economy and consequently drive inflation on the black market even as most parts of the country remain largely on lockdown, Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya said.
Appearing before the parliamentary portfolio committee for Budget and Finance, which is chaired by Felix Mhonda, Mangudya yesterday admitted it would be difficult to tame the black market because of the rent-seeking and speculative behaviour of Zimbabweans.
“The mobile banking platforms are now being used as an industry by foreign currency dealers whereby they sell foreign currency on what appears to be Ponzi schemes.
“They are making money from selling money, they wake up every morning and ask where (sic) the rate will be and if it is at 1:40 they will go to 1:45 in order to make a profit and the trend continues, that way it will become a Ponzi scheme.
“It is not about us hating the mobile platforms, but what happens there is more like Sodom and Gomorrah. You ask yourself what is happening and there is no clear answer. We are very concerned.  It’s more like shadow banking and when that happens, it becomes a serious threat to the economy,” said Mangudya.
As of yesterday, the country’s dollar was trading at 1:60 to the United States dollar after the introduction of new $10 notes on Tuesday, with Mangudya admitting before the committee that it would be an exercise in futility if the apex bank adjusts the official rate that is currently pegged at 1:25 to match the runaway parallel market rate.
“It is not about money supply that has caused inflation, we are defying logic, we are going against the grain.
“Whenever we put measures in place to make our economy grow, it seems there is a asymmetric economic warfare, it is more like a guerrilla warfare, this is a disappointing factor and we need to work as team Zimbabwe to end this.
“The rate changes in the minds of people, there is no country that does not have a parallel rate, but the parallel rate in Zimbabwe changes frequently, why can’t it be stable.
Amid a proliferation of money laundering and illicit foreign currency dealings on the black market, the RBZ early this month directed banks to freeze over 100 accounts linked to mobile money transfer platforms that were suspected to be at the heart of the illegal practices.
However, Mangudya said the RBZ has not launched a witch-hunt against mobile banking platforms, but is concerned with the amount of money in circulation on those platforms which could cause shockwaves within the economy if it is not accounted for.
3 Comments
  1. Tony kasin says

    The only thing to eliminate forex trader is banks to have money that’s all , if people can go to banks and ATMs and get money there what will be the reason for them to go on the streets ? People have no choice

  2. Jambwa1 says

    mangudya shut up please and let us bleed to death, for starters you promised to resign when the bond fails. now you pretending to be in the dark as to why the bond keeps loosing value honestly?

  3. Limukani says

    True Mr Reserve Bank Governor. However, any parent of a sound mind should step back and introspect why children behave this way and not that way. Ethical behaviours are corrected by ethical value enforcement and not political principles that are hollow of ethical principles. Confidence and trust in our economic environment are the main cause of the behaviour of citizens. Our political and economic political policies are not realistic but a dog-chasing-tail ones. The intolerant political activities of those with upper hand leave a lot to be desired as they play the role of a scarecrow and not an attractive flower to the bee.

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