About 170 illegal foreign currency dealers have been
arrested countrywide since last week as police intensify a campaign against
currency trading which caused volatility in the prices of basic commodities.
Police also say they launched the operation against the
illegal currency traders because they pose a serious security and economic
threat to the country.
National Police spokesperson Assistant Commissioner Paul
Nyathi confirmed the arrests yesterday, saying they were conducting the operation
together with other relevant stakeholders.
“The Zimbabwe Republic Police, having noted that activities
by illegal foreign currency dealers were posing a serious security and economic
threat to the country, embarked on a countrywide operation meant to enforce
Statutory Instrument 122A of 2017, Exchange Control (Amendment) Regulations,
2017 (No.5), which criminalises the illegal trading in foreign currency.
“This operation is being done in conjunction with relevant
stakeholders,” he said. Asst Comm Nyathi said statistics from provinces on
Monday indicated that six people were arrested for illegal dealing in foreign
currency and seven for blocking pavements countrywide.
“Cumulatively, as from October 18, 2018, a total of 107
arrests have been made for dealing in foreign currency and 58 for blocking
pavements countrywide.
“Police are warning members of the public to desist from
illegally dealing in foreign currency as the long arm of the law will always
catch up with them,” he said.
He said the operation would continue until there was sanity
in all towns and cities. “Members of the public, business entities, corporates
and individuals are encouraged to cooperate with law enforcement agents in
order to ensure that law and order are maintained throughout the operation,”
Asst Comm Nyathi said.
The arrests also came as President Mnangagwa last weekend
said he would invoke the Presidential Powers (Temporary Measures) Act to
introduce tough regulations to bring currency manipulators to book. In his
weekly column in The Sunday Mail, the Head of State and Government said it was
inconceivable that rampant black market activities were thriving without
complicity of high-ranking State officials. President Mnangagwa said:
“Considering that more than $9 billion is passing through different electronic
platforms and leaving an ‘electronic trail’, it is inconceivable that these
illicit transactions have and can ever go on undetected or unnoticed. It simply
cannot be.”
Speculative activities, especially illegal foreign currency
trading, have caused a marked depreciation of Bond notes and RTGS balances
against the United States dollar, triggering hikes in the prices of basic
commodities, panic-buying and product shortages.
President Mnangagwa revealed he had tasked his top legal
advisors to craft comprehensive legislation to plug loopholes that allowed
black marketeers to operate with impunity.
“Currently, we have no legislation to deal with currency
manipulators. We, therefore, need urgent and robust measures to deal with this
financial menace.
“Accordingly, I have now instructed the Minister of
Justice, Legal and Parliamentary Affairs to work closely and expeditiously with
the Attorney-General in order to produce a new set of regulations which will be
promulgated under temporary law-making powers which I, as President, am allowed
by the Constitution. These regulations will remain in force for a statutory
period of six months, during which a Bill will have to be processed for
consideration by our legislators,” President Mnangagwa said.
The new law will be in line with international best
practices, where suspicious transactions are automatically flagged and
investigated. Herald
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