Politics & General News

Black market sinking ZiG deeper into recession

Spiralling ZiG to US$ black market rates shock Finance Minister Mthuli Ncube

©️Hanyani News Online

FINANCE Minister, Mthuli Ncube this Friday expressed profound shock after he was informed of the latest exchange rate premiums obtaining on the parallel market in a development which left his surbordinates vowing to clamp down on illegal cash deals on the streets.

An earlier survey on the parallel market in Harare’s CBD Tuesday revealed that while the ZiG official rate was averaging ZiG13,36 against the greenback, street dealers were paying ZiG 16,00 for every US$1 signifying about 19,7% depreciation rate.

When disposing of the greenback, the shadow market price is ranging around ZiG 20, 00 signifying a decrease of around 49,7% from the officially recognised exchange rate.

Quizzed by this publication during a virtual press conference Friday on what is prompting such depreciation, Ncube expressed shock over the developments.

“I am not aware of such premiums in the parallel market. I can’t even understand where this is coming from. As far as we know there haven’t been any liquidity injections in the economy.

“The fiscus remains very tight and I wonder what really is driving such premiums,” Ncube said from Washington D.C where he is attending the International Monetary Fund (IMF)’s Spring Meetings.

Ncube said if there are any speculators causing this they must desist from these kinds of activities arguing there is even no reason why our local companies should source for foreign currency from the parallel market because banks have adequate capacity to meet their needs.

Also speaking at the same occasion, Finance Ministry’s Permanent Secretary, George Guvamatanga vowed to leave no stone unturned in making sure that all speculators and parallel market dealers face the wrath of the law.

“I don’t understand why any company should resort to sourcing foreign currency on the parallel market to begin with. It must be clear to everyone that money laundering and all associated activities are serious crimes across the globe. There will be severe implications to those caught on the wrong side of the law.

“Right now the market cannot even take up US$1 million dollars, so what is pushing up those rates? I have heard some sections of society referring to these speculators as money changers when in fact these are money laundering criminals,” he said. NewZimbabwe

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