MONEY changers in the country are finding the going tough
following the ban on mobile money agent lines and the introduction of daily
transaction limits.
The Reserve Bank of Zimbabwe (RBZ) recently banned mobile
money agent lines as well and set $5 000 as the cap for daily transactions for
individuals.
The central bank also introduced a policy that limits
mobile wallet users to only one account per individual. Agent lines were being
used across the country to cash-in and cash-out as well as for sales
transactions. The RBZ suspected that some of the lines were being used to fuel
the black market causing a spike in foreign currency rates.
Following the recent daily and monthly limits pronouncement
by the central bank, foreign currency dealers had resorted to multiple accounts
to sustain their operations.
“Since the lockdown began in March our job has become
difficult as authorities are closing all avenues for us. Now this latest ban on
agent lines and the cap in daily mobile transactions has totally frustrated our
business,” said one money changer in Bulawayo.
Others have since quit the trade and opted for other income
generating avenues. “Running battles with police is not a nice thing, worse as
a woman. I have since quit ukuphathelisa (money changing) and opted for vending
where I now sell products at home. I am not going to town anymore,” said
another money changer.
Others said they will remain fighting for their space,
claiming that business was still there.
“The squeeze on our operations by authorities is good
because it has weeded out chancers and left genuine players.
“We have been in this business for long and know how to
survive. It’s good that a few players remain and not have everyone changing
money,” said another operator at Tredgold.
The RBZ in June this year introduced the foreign currency
auction system to determine the Zimbabwe dollar exchange rate. Since the weekly
auctions were introduced, the foreign exchange rate has stabilised and the
black-market rate has been tamed.
Government in June this year ordered the suspension of
mobile transactions to allow for investigations in the parallel market.
“Agent wallets are no longer serving any legitimate purpose
and were now being used primarily for illegal foreign exchange transactions.
“Agents’ mobile money wallets are therefore abolished, with
immediate effect,” the RBZ said recently in its Mid-term monetary policy
statement.
When Ecocash was first introduced, agent lines were used
for cash-in purposes at a low level. However, some unscrupulous individuals
took advantage of cash shortages that the country is facing to fleece members
of the public, charging almost 100 percent to cash out. The RBZ said agents who
currently had funds in their accounts would transfer them into their bank
accounts after providing sources of the money.
“Agents currently holding value in suspended and frozen
wallets shall be allowed to liquidate the funds to their bank accounts, upon
the Financial Intelligence Unit (FIU) having satisfied itself of the legitimacy
of the source of the funds,” said the Apex Bank.
When the RBZ suspended and froze agent and bulk-payer
wallets in June, mobile money operators allowed illegal foreign currency
dealers to use multiple individual wallets as a means to bypass the transaction
limits and continue with their illicit transactions.
“Mobile money operators shall, with immediate effect, close
all multiple wallets, and allow just one wallet per individual,” directed the
RBZ.
-New Ziana
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