Monday, October 21, 2019
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Black market rates tumble!!

THE foreign currency black market was Friday in sixes and sevens forcing many traders to suspend trading for fear of losses.

The rates tumbled soon after the Reserve Bank of Zimbabwe (RBZ)’s directive to freeze accounts for at least four vibrant companies.

On Friday morning the United States dollar was trading at 1 USD -ZWD230 but after the directive the rates dropped to between ZWD 160 and ZW175.

The central bank’s Financial Intelligence Unit responsible for curbing money laundering orders all banks to freeze accounts for Kuda Tagwirei’s Sakunda, Croco Motors, Spartan Security and Access Finance to pave way for investigations for alleged money laundering activities.

traders said suddenly the flow of currency for trading disappeared, and markets responded in tandem.

“I have been forced to suspend trading as the rate is going down fastger than it goes up,” said one trader at the popular Ximex Mall.

“My boss suddenly has no float to enable me to trade, and this has negatively affected me.”

Questions raised are whether the loss of points has anything to do with the freezing of barons accounts, or it is just mere coincidencee.

Also, if the central bank was aware that certain barons were pushing the rate, why have they been reluctant to act?

Others are also questioning how a whole country’s financial levers can be controlled by a small group of individuals, to the detriment of the economy.

But for how long is the rate going to hold steady, or is it going to decrease further to maybe the same rate as the interbank which Friday was trading at around 14 to the dollar.

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