ZiG kicks off third week on a stronger note

Zimbabwe’s new currency kicked off its third week on a stronger note raising questions as to who is manipulating the currency on the black market.

The ZiG which kicked off at 13.5616 on 8 April today averaged 13.2889 with the buy rate at 12.9567 and the sell rate at 13.6211. The sell rate on 8 April was 13.9006 and the buy rate 13.2226.

The black market rate, however, does not make sense. According to zimpricecheck, the ZiG buy rate is 14 and the sell rate 20.

Central bank governor John Mushayavanhu says if the ZiG becomes too strong, the bank will intervene.

“Depending on if it becomes too strong or too weak, you can either buy or sell and bring it back to normal. We expect that if market forces are working, which they are, there may be no need for that.”

Mushayavanhu says the ZiG was introduced following recommendations from the industrial sector, a move that should ensure the stability of the local currency, but speculators are already attacking the new currency.

Police said 65 illegal money changers were arrested in Harare last week, some of them with

point of sale machines, credit and debit cards, a clear sign that they are either big operators or runners for big business or “chefs”.

Mnangagwa himself admitted a few years ago: “In a number of cases which have now been brought to government’s attention, some of our guardians of the financial services sector have either not discharged their roles fully, or have not done so honestly.

“In other cases, some have colluded with negative elements, both inside and outside the banking system, to aid and abet these illicit transactions. 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. Someone somewhere sees this, or simply winks.”

An exercise by the ruling party indicated that some of the major operators were senior party officials including Mnangagwa’s own lieutenants.

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