The Confederation of Zimbabwe Industries (CZI) has warned that the crackdown on the foreign currency black market alone will not save the Zimbabwean dollar. They have warned that arresting and charging those involved without providing a viable formal market is futile. This follows the government’s recent strikes against the foreign currency black market which saw rates rising as high as 200 ZWL: 1 USD
The CZI was speaking following threats by the government and the RBZ that businesses found to be involved in black market deals would have their business licences suspended.
The greatest risk facing the economy right now is an inappropriate policy response to the rising parallel market premium,Clamping down on informal foreign exchange trading in the absence of a viable formal market will have catastrophic consequences for the economy.
The Zimbabwe dollar is now in real peril … well considered policy measures must be implemented by the authorities aimed at bringing back confidence into the currency marketsPart of the CZI letter to the government.
In a bid to shoal up the value of the Zimbabwean dollar the RBZ recently met stakeholders this week. They agreed on a series of measures that will include banks reporting suspected foreign currency dealers to the government. It’s not clear how banks are supposed to identify these suspects without violating confidentiality.