Market observers, including MarketWatch and Zimrates are observing a cool down in the forex black market following an RBZ warning that if the trend continued it would freeze the accounts of those involved in illegal foreign currency trading.

ZWL365 show rates moving down which seems contradictory to what we have been seeing #MarketWatchZW @ZimRates1 https://t.co/ApyDdr5zNK

— Market Watch Zimbabwe (@MarketWatchZW) January 24, 2020

This was predictable

We predicted this would happen when the RBZ issued its warning. Past experience has shown that the RBZ can be quite tough and determined when it comes to slapping down the rate. It has spared no effort including introducing stringent EcoCash requirements including a ban on Cash In and Cash out at one point.

However, given the insatiable thirst for foreign currency in the economy how long will this retreat last? Probably it will be much less longer than past RBZ initiated retreats as the stakes are now higher what with it being the only reliable source of much needed foreign currency.

For most businesses there are two choices. Trade on the black market and face the wrath of the RBZ or don’t trade and die. Most would rather swim with the crocodiles at the moment.