News / National
The 'torn' money-buying brigade: A hustle for survival in Zimbabwe
27 Nov 2024 at 07:05hrs | Views
For many in Zimbabwe, especially those navigating the streets of Harare, torn or worn-out money has become more than just a nuisance - it's an opportunity for survival. One such individual, 30-year-old Takudzwa Moyo, has found a unique way to earn a living by buying damaged US dollar banknotes at a fraction of their value.
"As for me, it represents an opportunity. With the little profits I make from buying torn money, I manage to earn a living," Moyo said. He explained that the amount he offers depends on how torn the currency is, with a US$5 note typically fetching him US$3 to US$4, while a US$10 note would see him pay around US$8.
Moyo's hustle doesn't stop there. He also sells airtime and often uses the torn money to fund his stock, thus generating profits once the airtime is sold. "I prefer to use that money to order airtime, so I get my profits after selling it," he said, reflecting how such deals have become part of his daily routine.
The streets of Harare echo with the sounds of Chinese-made loudspeakers, calling out "Tinotenga mari yakabvaruka" (We buy torn money). This cry has become common as businesses and the general populace increasingly reject damaged currency, especially worn-out United States dollars (USD). While the majority of Zimbabweans refuse to accept damaged notes, a new group of individuals, dubbed the "money-buying brigade," has found a lucrative niche.
These individuals purchase the torn notes at significantly reduced prices, often at half or less of their face value, before exchanging them for new, clean notes at banks or financial institutions. Though time-consuming, this process can be highly profitable, particularly during periods of economic instability or inflation.
For Tinotenda Mukwada (31), buying torn USD notes has proven to be a game-changer. "I saw buying torn USD notes as a business opportunity and innovative way for me to survive," he said. Mukwada explained that he primarily deals with small notes like US$1 and US$2, offering half the value to customers in exchange for damaged money. Once he has collected around US$200, he exchanges it at the bank for new bills, pocketing a small profit in the process.
"Buying small notes works best because banks give you the full amount for them," Mukwada explained. "With bigger notes like US$50 or US$100, they only give you 90% of the value."
This unconventional trade can be traced back to Zimbabwe's ongoing economic hardships, including hyperinflation and currency shortages, which have created opportunities for people like Joseph Mugauri (36). A seasoned torn-money buyer, Mugauri has been in the trade for almost a decade. "I saw that the state of the economy was really bad, and it's still the same. I saw an opportunity to make money," he said.
Mugauri also believes his work serves a larger purpose, offering a vital service to those desperate to use their damaged notes. "People come to me with their damaged money, feeling hopeless. When I exchange it for them, it's a small victory as it gives them a sense of relief," he said.
Despite the business's potential rewards, the money-buying brigade faces a number of challenges, including the risk of being accused of taking advantage of people's desperation. "Sometimes people worry that I may cheat them or take advantage of their situation," Mugauri added.
For formal businesses, however, accepting torn money remains a logistical and financial challenge. Esther Mutandwa, a trader in Harare's central business district, explained, "I cannot accept torn money, I will not have time to take it to the bank because I will be inconvenienced in my day-to-day running of the business."
Similarly, Kudakwashe Mutizwa, a kombi driver, said, "We do not accept torn money because of how we operate. We will be rushing to and from different places to earn better amounts per day, so we don't have time to collect torn money to take to the banks."
While the Reserve Bank of Zimbabwe (RBZ) mandates local banks to accept soiled or damaged money in exchange for crisp notes, supermarkets and other formal traders remain hesitant to engage with the practice. As a result, the money-buying brigade continues to thrive in a grey area of Zimbabwe's informal economy.
The U.S. Embassy, however, clarifies that torn and damaged US currency remains legal tender, as long as it is not mutilated to the point where its value is unrecognizable. "All designs of US Federal Reserve notes remain legal tender or legally valid for payment, regardless of when they were issued," the embassy states.
Despite the regulatory framework that allows for the exchange of damaged currency, Zimbabwean authorities have expressed concern over the growing informal exchange of foreign currency. National police spokesperson Commissioner Paul Nyathi cautioned, "The exchange control regulations in Zimbabwe prohibit the buying and selling of foreign currency on the streets and outside authorized dealers, such as banks."
Nyathi warned that illegal foreign currency trading could lead to prosecution, as it is seen as a potential threat to national economic stability.
Nevertheless, as Zimbabwe grapples with persistent economic challenges, the money-buying brigade continues to play a significant role in the country's financial landscape, helping individuals exchange damaged currency while simultaneously finding a way to survive in a difficult economy.
"As for me, it represents an opportunity. With the little profits I make from buying torn money, I manage to earn a living," Moyo said. He explained that the amount he offers depends on how torn the currency is, with a US$5 note typically fetching him US$3 to US$4, while a US$10 note would see him pay around US$8.
Moyo's hustle doesn't stop there. He also sells airtime and often uses the torn money to fund his stock, thus generating profits once the airtime is sold. "I prefer to use that money to order airtime, so I get my profits after selling it," he said, reflecting how such deals have become part of his daily routine.
The streets of Harare echo with the sounds of Chinese-made loudspeakers, calling out "Tinotenga mari yakabvaruka" (We buy torn money). This cry has become common as businesses and the general populace increasingly reject damaged currency, especially worn-out United States dollars (USD). While the majority of Zimbabweans refuse to accept damaged notes, a new group of individuals, dubbed the "money-buying brigade," has found a lucrative niche.
These individuals purchase the torn notes at significantly reduced prices, often at half or less of their face value, before exchanging them for new, clean notes at banks or financial institutions. Though time-consuming, this process can be highly profitable, particularly during periods of economic instability or inflation.
For Tinotenda Mukwada (31), buying torn USD notes has proven to be a game-changer. "I saw buying torn USD notes as a business opportunity and innovative way for me to survive," he said. Mukwada explained that he primarily deals with small notes like US$1 and US$2, offering half the value to customers in exchange for damaged money. Once he has collected around US$200, he exchanges it at the bank for new bills, pocketing a small profit in the process.
"Buying small notes works best because banks give you the full amount for them," Mukwada explained. "With bigger notes like US$50 or US$100, they only give you 90% of the value."
This unconventional trade can be traced back to Zimbabwe's ongoing economic hardships, including hyperinflation and currency shortages, which have created opportunities for people like Joseph Mugauri (36). A seasoned torn-money buyer, Mugauri has been in the trade for almost a decade. "I saw that the state of the economy was really bad, and it's still the same. I saw an opportunity to make money," he said.
Mugauri also believes his work serves a larger purpose, offering a vital service to those desperate to use their damaged notes. "People come to me with their damaged money, feeling hopeless. When I exchange it for them, it's a small victory as it gives them a sense of relief," he said.
Despite the business's potential rewards, the money-buying brigade faces a number of challenges, including the risk of being accused of taking advantage of people's desperation. "Sometimes people worry that I may cheat them or take advantage of their situation," Mugauri added.
For formal businesses, however, accepting torn money remains a logistical and financial challenge. Esther Mutandwa, a trader in Harare's central business district, explained, "I cannot accept torn money, I will not have time to take it to the bank because I will be inconvenienced in my day-to-day running of the business."
Similarly, Kudakwashe Mutizwa, a kombi driver, said, "We do not accept torn money because of how we operate. We will be rushing to and from different places to earn better amounts per day, so we don't have time to collect torn money to take to the banks."
While the Reserve Bank of Zimbabwe (RBZ) mandates local banks to accept soiled or damaged money in exchange for crisp notes, supermarkets and other formal traders remain hesitant to engage with the practice. As a result, the money-buying brigade continues to thrive in a grey area of Zimbabwe's informal economy.
The U.S. Embassy, however, clarifies that torn and damaged US currency remains legal tender, as long as it is not mutilated to the point where its value is unrecognizable. "All designs of US Federal Reserve notes remain legal tender or legally valid for payment, regardless of when they were issued," the embassy states.
Despite the regulatory framework that allows for the exchange of damaged currency, Zimbabwean authorities have expressed concern over the growing informal exchange of foreign currency. National police spokesperson Commissioner Paul Nyathi cautioned, "The exchange control regulations in Zimbabwe prohibit the buying and selling of foreign currency on the streets and outside authorized dealers, such as banks."
Nyathi warned that illegal foreign currency trading could lead to prosecution, as it is seen as a potential threat to national economic stability.
Nevertheless, as Zimbabwe grapples with persistent economic challenges, the money-buying brigade continues to play a significant role in the country's financial landscape, helping individuals exchange damaged currency while simultaneously finding a way to survive in a difficult economy.
Source - newsday
