Harare – The cat and mouse game between illegal currency traders and law enforcement authorities has taken a drastic shift, as both sides modify tactics in their ongoing battle. Initially, the introduction of Zimbabwe’s new currency and the implementation of Statutory Instrument 81A sent traders underground swiftly, though their resolve and innovation has enabled a stealthier comeback.
Where dollars once traded frantically on every street corner, supermarket entrance, and money transfer outlet in Harare, an eerie hush has now fallen – the silent aftermath of a sweeping crackdown. Hundreds of money changers were arrested as police wielded the law forcefully, appearing to crush the open market. Yet the allure of illicit profit and the whispers of dollar exchanges were too potent to fully extinguish. Rumours indicated that operations had gone fully covert.
“Illegal forex dealers have resurfaced but altered their methods,” confided one informant, a former forex trader himself. Through coded WhatsApp messages and veiled in-person conversations, exchange rates have returned alongside a new sense of caution. Mobile transactions from vehicles have replaced fixed locations, and some feel the heat has dissipated enough to resume business. Though the open market vanished, shadowy dealings still persist in the shifting landscape.
“Even in private WhatsApp groups, many were reluctant to openly admit holding dollars or needing local currency when the heat intensified,” he confided. “Rates vanished from message threads as everyone went underground, but now business is booming again in the shadows.”
Many see the recent crackdown as temporary, merely a response to a new policy, confident the risk of arrest will pass. One risk-taker admitted to this news crew: “Total withdrawal isn’t an option since this pays my bills. Only trusted customers get to do business with me now, and the engine runs so we can evade capture should they strike.”
According to national police spokesman, Commissioner Paul Nyathi, the latest sweep has netted ten culprits with more to come. “We will persist in dismantling these unlawful operations and bringing perpetrators to justice,” he vowed, signaling broader targets beyond street-corner exchanges.
“We also have some supermarkets, pharmacies and small businesses which are using exorbitant rates when transacting. Certainly, action will be taken against all those involved in such activities or anyone using social media to illegally trade in foreign currency,” he cautioned.
The latest arrests arise as Zimbabwe struggles with a persistent lack of foreign currency, fueling a thriving underground market for US dollars and other hard currencies. The black market prices frequently fluctuate erratically, making it tough for businesses and people to strategize and oversee their finances.
The crackdown on money changers started in earnest earlier this year, with authorities arresting 224 individuals by May. The FIU simultaneously moved swiftly to freeze 90 accounts suspected of being used for illegal currency trading. Furthermore, civil penalties were imposed on over 40 people found violating the Exchange Control Act.
However, the crackdown has not been without criticism. Some argue that the authorities are targeting the wrong people, focusing on low-level money changers while ignoring larger players truly driving the black market. They also point out that the crackdown has done little to address the underlying economic problems fueling demand for foreign currency.
Despite pushback, authorities remain committed to disrupting illegal currency trading. By targeting money changers, they aim to sabotage the black market and reduce demand for foreign exchange.
Police appealed to the public to aid the crackdown by reporting any suspected illegal currency dealings to their National Complaints Desk on telephone number (024) 2703631 or WhatsApp number 0712 800 197.
The ongoing clampdown on money changers represents just one facet of broader Zimbabwean government efforts to combat the black market and reestablish economic stability. Additional measures include debuting new currency and tightening exchange controls further.
