Illegal money changers in Harare and other parts of the country are now hanging around and even inside supermarkets that might have a reasonable number of shoppers using foreign currency offering to pay a premium.
They use their bank cards or Ecocash to pay for groceries
and other items on behalf of shoppers and get the hard currency later.
The near ubiquitous CCTV systems that most supermarkets
have installed to prevent shoplifting are just as good at catching currency
deals on the premises, and the supermarkets dislike the practice.
Some even get to an extent of pushing trolleys for the
customers in supermarkets, make payment and assist the shopper to pack the
groceries in their vehicles.
In some shops, illegal money changers pose as genuine
customers, picking some items and putting them into trolleys. They then sidle
up to likely targets and ask if they are using US dollars. If the shopper is
not the dealer breaks off and starts stalking another target.
Officially, US$1 is worth a whisker under $84, but the
illegal foreign currency traders are offering higher rates ranging from $100 to
$110 per US$1. Cash rates are lower, around $90.
Traditionally, illegal money changers in Harare hung around
Patrice Lumumba Street near the intersection with Agostinho Neto Avenue
opposite Meikles Hotel, around the south and west sides of Eastgate Mall,
outside Roadport international bus station, in Kwame Nkrumah Avenue at the back
of Holiday Inn and some shopping centres across the suburbs, both high and low
density.
They are still there, but some, faced with the competition,
are now trying the supermarkets.
Supermarkets like OK Zimbabwe, Pick n Pay, Mahomed Mussa,
Spar and others that stick to the official auction rates in their transactions
are mostly targeted by illegal money changers.
Smaller shops that illegally trade at exchange rates higher
than the official rate do not attract illegal money changers.
At one stage police did wonder if shop owners using
official rates were working in cahoots with the illegal changers, and some shop
owners were even questioned, but none have been charged and the police now
accept that the shop owners are as against the practice as they are.
Zimbabwe Retailers Association president Mr Denford Mutashu
confirmed the new business approaches of the “store dealers”.
“Illegal foreign currency traders operating on the
entrances to major shops have become a menace. They are an ugly creature, not
only to us, but to the entire economy. They are weighing down on positive
policies introduced by the Government to revive the economy,” he said.
Much of the forex meant for formal shops, is being
collected by illegal traders outside major shops, resulting in serious foreign
currency shortages for certain imported consumer goods.
While industry can go to the auctions, and store owners can
buy local products without foreign currency, the commercial sector still has to
find its own currency to import some of the luxury and semi-luxury consumer
items that are not on the auction priority lists.
They were relying on raising their own foreign currency by
offering to take US dollars and other currencies at their tills, but using
auction rates. Now, especially in the city centre, shops are seeing fewer
foreign currency shoppers.
“It’s a huge problem for the sector. It is now difficult
for established shops to raise forex for restocking. All forex is now being
mopped and diverted to the black market.
“We are not an arresting authority, but we continue to
engage the police in our quest to curb the rot. The police have tried their
best, but they are also facing challenges. “
We need to work together with the law enforcement agents,”
he said.
As part of an investigation, an investigative journalist
visited a number of shops in Harare, including OK First Street, Pick n Pay
Kavalamanja Battle Street and Mahomed Mussa Wholesalers in Guy Clutton Brock
Avenue where money changers had slunk into the premises, pretending to be
shoppers and sliding up to those who they thought might be using US dollars. At
Pick n Pay Jason Moyo Avenue, illegal money changers could be seen pushing
trolleys as if they wanted to buy, when they intended to negotiate with buyers.
“My brother, are you using US dollars? I can swipe for you
at a good rate of US$1:$110. It’s cheaper for you because the shop uses a
lesser rate of US$1:$83,” said a female money changer, who used to operate from
Eastgate Mall.
Asked on the rate for EcoCash payment, the woman said: “For
EcoCash transactions our rate is US$1: $100 because the charges of transacting
are higher,” she said.
At OK First Street Mall, the rate for using bank cards was
US$1: $105 when EcoCash rate was at US$1: $100.
Illegal money changers at OK First Street offered to push
the trolley for their “clients” in the shop assisting in picking groceries.
They also offered to push the trolley to the vehicle where
they would get their cash. They no longer accept to be paid their US dollars in
the supermarkets for fear of being captured by cameras.
Beitbridge town is generally a rand economy due to the area’s
location at the busiest inland border in Sadc.
Many people transact in foreign currency which has resulted
in some informal currency dealers camping near or at established wholesale
shops including N. Richards and N & R, and other shops, where they target
those people intending to buy goods using either South African rands or United
States dollars.
They offer lucrative rates which are slightly above the
official auction rates. In exchange for the foreign currency, they either buy
goods on behalf of the clients using their credit cards or transfer money into
the clients’ bank accounts.
One dealer who preferred anonymity said their major clients
were shop operators from the rural part of the district who use mainly rand to
restock goods for their shops.
“You will note that because of network connectivity in
rural parts of the district, many transactions are done in foreign currency and
hence there is a huge amount of rands in circulation there. “It’s cheaper for
the shop owners to buy goods using local currency at the wholesales and hence
we offer them lucrative deals,” said the dealer.
In Bindura The Herald visited Pick n Pay supermarket where
money changers were openly touting for clients on the entrance.
The illegal transactions were being done in full view of
some police officers who turned a blind eye and chose to mind their own
business.
A woman who was pacing around the Pick n Pay supermarket
while displaying wards of notes approached The Herald reporter offering to buy
for her using her bank card at the rate of US$1: $100.
The situation was the same at N. Richards where people
illegally transacted without fear. Herald
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