Govt takes two-pronged approach to tackle currency...

Govt takes two-pronged approach to tackle currency manipulation

Nyashadzashe Ndoro

CHIEF REPORTER

Zimbabwe’s government is taking a two-pronged approach to tackle manipulation of the country’s recently introduced currency.

The Ministry of Finance is imposing fines on retailers who deviate from the official exchange rate, while the Ministry of Justice is acknowledging the need to strengthen law enforcement’s capacity.

This comes amid concerns that some businesses are charging inflated prices, undermining the stability of the new currency.

Parliamentarian A.T. Mavunga expressed satisfaction with the Ministry of Finance’s measures, which include eliminating the 10% limit on certain good’s prices and imposing fines of at least ZiG 200 000 for violations.

Mavunga, however, raised concerns about the police force’s ability to enforce the regulations at the ground level.

While Minister of Justice, Legal and Parliamentary Affairs Ziyambi Ziyambi deferred to the Ministry of Finance for a response on enforcement, Mthuli Ncube, the Minister of Finance, acknowledged the need to bolster both the Financial Intelligence Unit and the police.

The Financial Intelligence Unit, tasked with investigating financial crimes, is being granted additional resources to enhance its effectiveness. The police force will also receive extra support, potentially including equipment and increased mobility, to ensure they can adequately address the situation.

“... the Financial Intelligence Unit has been effective in investigating illicit activities, money laundering and other aspects and in fact, triggering the sanctions on those who are deviating from the prescribed exchange rate or pricing frameworks, but of course, we can never say they have all the capacity they need”, Ncube said.

“In fact, they have written to me to say Minister, we need more capacity and I have granted that and we will be giving them more resources so that they can hire more personnel equipment or whatever they need like tools of trade to remain effective on the ground, but that is one hand. Hon. Mavunga wanted to know more about the police side.

“Again, we have said to the law enforcement agents, the police that if they need additional capacity, we are happy to support that whether it is equipment mobility, we have to support that because this is an important issue. I can assure him and I can assure the nation that we really mean business and we will make sure that our law enforcement agents and agencies are equipped enough to deal with the situation.”

These measures come as Zimbabwe seeks to stabilise its currency and foster economic growth.

The law enforcement agents have so far arrested more than 70 suspected illegal moneychangers, including the son of Zanu PF spokesperson Christopher Mutsvangwa, Neville.

Mutsvangwa has since described the arrest as political victimisation.