AFTER evading police arrest last week, 34-year-old James, a
Harare-based illegal foreign exchange dealer, is still in the game and has
devised other means of trading in United States dollar amid a clampdown on
foreign currency trading on the parallel market.
A police blitz recently arrested 65 suspected foreign
currency dealers as the new Zimbabwe Gold (ZiG) currency showed early signs of
fragility on the parallel market.
The ZiG currency was launched early this month when Reserve
Bank of Zimbabwe governor John Mushayavanhu released his inaugural Monetary
Policy Statement pegging it at a rate of US$1 to ZiG13,56.
The parallel market exchange rate, however, jumped to ZiG20
to the United States dollar in a few weeks giving the government a fresh
headache while exposing the government’s patent naivety in dealing with the
age-old currency turmoil.
By Friday last week, the police had arrested more than 100
suspected foreign exchange dealers and the traders have virtually deserted the
streets fearing arrests.
Their fears were compounded by Vice-President Constantino
Chiwenga’s threats against the foreign currency dealers.
He said the buying and selling of ZiG on the parallel
market was a criminal offence similar to selling gold.
NewsDay interviewed several foreign currency traders who
dismissed Chiwenga’s threats.
“We are all in this mess together. The police can come to
assault us because of the directive by Chiwenga but after work they will come
to us asking for the US dollars,” a foreign currency dealer in Harare said.
“We are not on the streets but we now have other means of
trading and this can be done over a phone call and what we are doing is not
being seen on the pavements because we are now cautious in everything we are
doing.”
He vowed to return to the streets.
“In a few weeks we will return to the streets again, we are
just like vendors and we also want to earn a living,” he said.
Another forex dealer said the government should ensure that
both the rich and poor have access to US dollars.
He said the demand for the US dollar had since gone up
after the arrest of their colleagues.
“If the government wants everything to be normal, everyone
should now have the US dollar regardless of being rich or poor.
“If you want to look at it the US dollar is making rounds
among the rich people only and that is why this is difficult for most of the
people,” he said.
The illegal foreign currency dealers said they would remain
relevant in Zimbabwe as long as ordinary people have no access to foreign
currency in banks.
They also revealed that police details were making a
killing demanding money from some
illegal dealers after effecting arrests.
“Whenever there is an operation like this, there are people
who will benefit and there are some police officers who are taking bribes from
some money changers upon arrest,” they said.
However, national police spokesperson Assistant
Commissioner Paul Nyathi dismissed the allegations challenging the people to
report any police details soliciting for bribes.
“I am not even aware of that and those people with evidence
should come forward so that we can carry out our own investigations,” he said.
Economist Gift Mugano said the government was targeting the
wrong challenges.
“I do not want to sound as if I am fighting for the black
market. The biggest challenge we have is Treasury which pumps liquidity into
construction works,” he said.
“If you arrest the money changers at Copacabana you are not
doing anything. These people are jobless and the government is marking the
wrong man.
“The wrong man is the Finance ministry which is using the
wrong model to finance infrastructure; you cannot finance infrastructure with
cash.”
“The money changers at the Road Port are just part of the
ants on a mountain and the mountain is Treasury.
“Do you think the government has enough police to arrest
seven million people because almost everyone has been changing money on the
parallel market?”
Another economist Prosper Chitambara said confidence
building measures will determine the success of ZiG.
“The people should have faith in their currency as well as
the institution managing the currency. If that confidence is created we are not
going to see all these problems we are facing,” he said.
Political analyst Rejoice Ngwenya said arresting the
foreign currency traders was addressing the symptoms and not the problems
facing the economy.
“They should make sure that money is available. If you
arrest them [money changers] they will still come back when there is
hyperinflation.
“The government should make sure that the money is
available in the bank otherwise the foreign currency dealers will come back
eventually,” he said. Newsday