Forex traders are still in the game -Newsday Zimbabwe

He said demand for US dollars had increased since his colleagues’ arrest.

AFTER evading police arrest last week, James, 34, an illegal currency trader based in Harare, is still in the game and has devised other means of trading in US dollars amid a clampdown on currency trading. currencies in the parallel market. .

A police operation recently arrested 65 suspected foreign exchange traders as the new Zimbabwe Gold (ZiG) currency showed early signs of fragility in the parallel market.

The ZiG currency was launched earlier this month when Reserve Bank of Zimbabwe Governor John Mushayavanhu released his inaugural Monetary Policy Statement, pegging it at a rate of US$1 per ZiG 13.56.

However, the parallel market exchange rate jumped to ZiG20 per US dollar within a few weeks, giving the government a new headache while exposing its patent naivety in addressing the longstanding monetary turmoil.

As of Friday last week, police had arrested more than 100 suspected currency dealers and traders had virtually left the streets for fear of arrest.

Adding to their fears were Vice President Constantino Chiwenga’s threats against currency traders.

He said buying and selling ZiG on the parallel market was a crime similar to selling gold.

NewsDay interviewed several currency traders who dismissed Chiwenga’s threats.

“We are all in this mess together. The police may come to attack us because of Chiwenga’s directive, but after work they will come and ask us for US dollars,” said a foreign exchange trader in Harare.

“We are not on the streets, but now we have other means of commerce and this can be done through a phone call and what we are doing is not seen on the sidewalks because now we are cautious in everything we do.”

He promised to return to the streets.

“In a few weeks we will return to the streets, we are like sellers and we also want to earn a living,” he said.

Another currency trader said the government should ensure that both the rich and the poor have access to US dollars.

He said demand for US dollars had increased since his colleagues’ arrest.

“If the government wants everything to be normal, everyone should now have the US dollar, regardless of being rich or poor.

“If you look at it closely, the US dollar circulates only among the rich and that is why it is difficult for most people,” he said.

Illegal currency traders said they would remain relevant in Zimbabwe as long as ordinary people did not have access to foreign currency in banks.

They also revealed that police elements were making money by demanding money from some illegal traffickers after making arrests.

“Whenever there is an operation like this, there are people who benefit and there are some police officers who accept bribes from some money changers when they are arrested,” they said.

However, national police spokesperson Deputy Commissioner Paul Nyathi dismissed allegations challenging people to report any police details soliciting bribes.

“I’m not even aware of that and those people who have evidence should come forward so we can carry out our own investigations,” he said.

Economist Gift Mugano said the government was addressing the wrong challenges.

“I don’t want it to look like I’m fighting for the black market. The biggest challenge we have is the Treasury, which injects liquidity into construction works,” he said.

“If they arrest the Copacabana money changers they are not doing anything. These people are unemployed and the government is marking the wrong man.

“The wrong man is the Ministry of Finance, which is using the wrong model to finance infrastructure; “You can’t finance infrastructure with cash.”

“The money changers in Road Port are just part of the ants on a mountain and the mountain is the Treasure.

“Do you think the government has enough police to arrest seven million people because almost all of them have been exchanging money on the parallel market?”

Another economist, Prosper Chitambara, said confidence-building measures will determine ZiG’s success.

“People must have faith in their currency, as well as the institution that manages it. If that trust is created we will not see all these problems that we face,” he stated.

Political analyst Rejoice Ngwenya said arresting foreign exchange traders was addressing the symptoms and not the problems facing the economy.

“They should make sure there is money available. If you arrest them (the money changers), they will keep coming back when there is hyperinflation.

“The government should ensure that the money is available in the bank, otherwise forex traders will eventually return,” he said.

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