Many money changers have gone into hiding or are awaiting trial after being arrested for violating the Exchange Control Act. This crackdown aims to protect the Zimbabwe Gold (ZiG) currency, but it has left tenants struggling to find foreign currency to pay rent.
Mxolisi Ndlovu, a mother of three, faces this problem daily. “I hate month-ends. My landlord demands rent in US dollars, but banks are dry,” she lamented. Like many others, Ndlovu has to hustle for foreign currency, hoping the government will intervene.
The government has intensified raids on illegal forex dealers across cities and towns. About 9,000 suspected illegal traders have been arrested since the ZiG’s introduction. This operation is conducted in partnership with the Financial Intelligence Unit (FIU).
National police spokesperson Commissioner Paul Nyathi confirmed the nationwide operation. “We are targeting all illegal forex dealers in all parts of the country,” Nyathi said. Despite the crackdown, a few money changers continue to operate discreetly, serving traditional customers to avoid arrest.
Essential goods and services remain priced in foreign currency, especially in small retail shops. This situation forces many citizens to rely on illegal forex traders.
An illegal forex trader in Bulawayo, Nqobizitha, shared his experience. “The atmosphere is tense. We can get arrested anytime, but we have to survive. We are trading cautiously,” he said. “I deal only with trusted customers to stay safe.”
Property owners refuse to accept local currency for rent, exacerbating the tenants’ plight. Bulawayo United Residents Association chairperson Winos Dube criticized illegal forex dealers but urged the government to address the root cause. “Illegal forex traders sabotage the ZiG. They should get licenses to operate legally,” Dube stated.
Dube emphasized that economic fundamentals should drive out illegal forex dealers, not police actions. “The confidence in our ZiG currency by government agencies will determine its survival,” he said. Dube added that legal exchange agencies should be the benchmark for a normal functioning economy, not threats and arrests.
In 2017, the government enacted a law to curb illegal cash and forex trading, with offenders facing a mandatory 10-year jail term. However, meaningful convictions have been rare.
Today, tenants like Ndlovu bear the brunt of the flawed economic system. Earning in local currency, they face landlords demanding US dollars, making life difficult. Ndlovu prays for government intervention to alleviate her predicament.
The crackdown on money changers, while intended to protect the ZiG, has had severe repercussions on ordinary citizens. Without access to legal forex sources, tenants are left in a precarious situation. The government needs to address these economic challenges to restore stability and ensure the well-being of its citizens.
Source: Newsday
