Intelligence Mobilises Against Malpractices in Foreign Currency Dealers

Factionalism To Hinder Reform Efforts In Zimbabwe: Analyst
Image Credit: Daily News

Financial Intelligence Unit (FIU) and Exchange Control Division are mobilising resources to enforce compliance on measures brought by the Reserve Bank of Zimbabwe (RBZ) to sanitise the trading of foreign currency.

The move comes after a sudden surge of the US: Bond rate to 1:15 respectively, on the black market in the early days of last week.

The rate then returned to as low as 1:9 by Friday 5pm after the RBZ froze accounts of individuals who are widely believed to allegedly buying and externalising foreign currency from the local market.

A 40% increase in prices of goods on local retails followed the sudden surge of the US dollar and costs have remained up despite the Bond note gaining weight against the American tender.

In terms of measures to bring sanity Bureaux de Change are required to visibly display the interbank
exchange rate on their FX rate boards according to a press statement by the RBZ.

“All the interbank trades shall be processed at a margin of plus or minus 7% of the interbank mid-rate,” the central bank says.

“The Bureaux de Change shall only sell foreign currency cash to individuals for foreign travel, upon submission of a passport. The current cash limits for Personal Travel Allowance of USD300 per day, per travel, and up to a maximum of USD10,000 per year, should strictly be adhered to. The Bureaux de Change are, henceforth, required to endorse passports of travelers who would have purchased foreign currency.”

Business Travel Allowance is to be at USD400 per day and up to a maximum of 7 days per travel and the Bereaux de Change shall be required to strictly adhere to the daily reporting requirements to the Central Bank

Foreign currency remains a challenge in Zimbabwe and the RBZ has been encouraging exportation to ease the situation.

“Non-compliance by any Bureau de Change shall result in the imposition of heavy financial penalties, as well as revocation of the operating licence,” the central bank says.

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