Zimbabwe Extends Crackdown on Street Currency Traders to Companies

Zimbabwe’s Bold Move: Crackdown on Street Currency Traders and Companies

In a bold move to stabilize its economy and ensure the success of its new currency, Zimbabwe is cracking down on street currency traders and companies that are not using the official exchange rate of the ZiG currency. Finance Minister Mthuli Ncube announced plans to extend the crackdown to companies, ensuring that goods and services are priced using only the official exchange rate.

The ZiG, short for Zimbabwe Gold, was introduced on April 5 to replace the plummeting Zimbabwean dollar. Backed by 2.5 tons of gold and $100 million in foreign exchange reserves, the ZiG aims to gain traction and become the primary currency in the country. However, the US dollar still dominates over 80% of transactions in the economy.

To prevent the ZiG from being sidelined in favor of the US dollar, the government is taking strict measures to enforce its use. The financial intelligence unit and police are targeting street dealers who engage in currency speculation, with over 200 arrests made and 90 bank accounts frozen. Street traders have resorted to using WhatsApp to conduct transactions discreetly.

Finance Minister Ncube emphasized the importance of keeping the ZiG stable to build confidence in the currency. Since its introduction, the ZiG has remained relatively stable, trading at 13.40 to the dollar on Thursday. The government also plans to increase adoption of the new currency by legislating that it be used to pay certain taxes and fees.

The crackdown on street currency traders and companies is a crucial step in ensuring the success of the ZiG currency. By enforcing the official exchange rate and cracking down on illicit activities, Zimbabwe is taking proactive measures to stabilize its economy and build confidence in its new currency. Stay tuned for more updates on Zimbabwe’s economic transformation.