Opinion / Columnist
Naming and shaming of illegal forex dealers a good move
04 Oct 2021 at 05:51hrs | Views
THE Reserve Bank of Zimbabwe last week banned 30 black market currency dealers from operating any bank or mobile money accounts for the next two years. The central bank said the dealers should also be banned from using cellphone lines.
"The Financial Intelligence Unit (FIU) has instructed banks, mobile money operators and other financial services providers to identify and freeze any accounts operated by these individuals and, further to bar them from accessing financial services for a period of two years," said Governor John Mangudya.
He said the FIU had also requested the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) to bar the 30 from operating cellphone lines. Dr Mangudya said FIU in collaboration with law enforcement agencies, will continue to monitor social media and bank accounts to identify and take action against perpetrators of illicit dealings. He said the FIU had also forwarded the names of the dealers to the police for prosecution.
Dr Mangudya said the widening of mismatch between the official exchange rate and the black market rate was not due to weak fundamentals, but was due to black market activities.
Many businesses are now pegging prices based on the black market rates hence the constant price hikes consumers are being subjected to.
Vice-President Retired General Constantino Chiwenga last week warned businesses against pegging their prices using the black market rates. ‘‘Businesses should not be hoodwinked by some malcontents that are operating on the parallel exchange market where foreign exchange arbitrage has become their lucrative business at the expense of the stability of the economy," said VP Chiwenga. He urged businesses and individuals to have confidence in the Zimbabwean dollar.
There is an urgent need for Government to come up with a mechanism to monitor price hikes and punish businesses that are pegging prices based on the black market rates.
Basic commodities are now beyond the reach of many consumers because businesses are constantly increasing the prices chasing the black market rates.
The naming and shaming of illegal forex dealers is a good move and it should be extended to businesses that are pegging prices using the black market rates.
Those illegally dealing in forex or pegging prices based on black market rates are economic saboteurs who want to destabilise the economy and as such deserve severe punishment.
The Zimbabwean dollar had stabilised but of late consumers have been subjected to incessant price hikes by unscrupulous businesses that are pegging prices based on the parallel market rates.
There is an urgent need to put a stop to this before we slide back to those dark days when prices of most commodities were being changed daily. Businesses that price goods and services above the ruling exchange rate should be named, shamed and fined heavily.
"The Financial Intelligence Unit (FIU) has instructed banks, mobile money operators and other financial services providers to identify and freeze any accounts operated by these individuals and, further to bar them from accessing financial services for a period of two years," said Governor John Mangudya.
He said the FIU had also requested the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) to bar the 30 from operating cellphone lines. Dr Mangudya said FIU in collaboration with law enforcement agencies, will continue to monitor social media and bank accounts to identify and take action against perpetrators of illicit dealings. He said the FIU had also forwarded the names of the dealers to the police for prosecution.
Dr Mangudya said the widening of mismatch between the official exchange rate and the black market rate was not due to weak fundamentals, but was due to black market activities.
Many businesses are now pegging prices based on the black market rates hence the constant price hikes consumers are being subjected to.
Vice-President Retired General Constantino Chiwenga last week warned businesses against pegging their prices using the black market rates. ‘‘Businesses should not be hoodwinked by some malcontents that are operating on the parallel exchange market where foreign exchange arbitrage has become their lucrative business at the expense of the stability of the economy," said VP Chiwenga. He urged businesses and individuals to have confidence in the Zimbabwean dollar.
Basic commodities are now beyond the reach of many consumers because businesses are constantly increasing the prices chasing the black market rates.
The naming and shaming of illegal forex dealers is a good move and it should be extended to businesses that are pegging prices using the black market rates.
Those illegally dealing in forex or pegging prices based on black market rates are economic saboteurs who want to destabilise the economy and as such deserve severe punishment.
The Zimbabwean dollar had stabilised but of late consumers have been subjected to incessant price hikes by unscrupulous businesses that are pegging prices based on the parallel market rates.
There is an urgent need to put a stop to this before we slide back to those dark days when prices of most commodities were being changed daily. Businesses that price goods and services above the ruling exchange rate should be named, shamed and fined heavily.
Source - The Chronicle
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