Zimpapers Logo

Nokuthaba Brita Ncube, [email protected]

PARLIAMENTARIANS have lobbied the Government to establish more bureau de change outlets across the country to promote official exchange rate benchmarking that will enhance economic stability.

Zimbabwe has faced significant economic challenges, many of which stem from currency manipulation and black market activities that undermine the nation’s financial stability.

Illegal money dealers have persistently exploited vulnerabilities within Zimbabwe’s financial system, engaging in practices that grossly inflate exchange rates to nurture a parallel economy.
Speaking in Parliament recently, legislators highlighted that black market proponents are still working hard to destabilise the currency.

Money changers

“We have noted that we do not have bureau de changes, which are there to serve different people,” reads part of a report from the Hansard.

“People are buying their foreign currency from the streets.
“If we have bureau de change outlets, this will stabilise the economy because it will eliminate the black market.”

However, economic analysts have noted the disparity in the exchange rate between formal and informal dealers as a challenge that puts the public in choosing to transact outside the formal banking system where there are higher returns, rendering bureau de changes useless.

While some existing bureau de changes are already licensed to buy and sell foreign currency, they have struggled to find people willing to sell their foreign currency to them due to the official exchange rate that is not usually high, which they are obliged to use as opposed to the parallel market rate.

Money Changers With Bank Swiping Machines

The initiative of bureau de change outlets is crucial as it helps to insulate the economy from the disruptions caused by currency manipulators and creates a level playing field for all economic participants.

The Reserve Bank of Zimbabwe (RBZ) in April this year introduced the Zimbabwe Gold (ZWG) currency as part of a raft of policy interventions to address exchange rate volatility, curtail inflation and restore macro-economic stability.

Reserve Bank of Zimbabwe (RBZ)

The new currency is backed by precious minerals, mainly gold, and foreign currency. Government’s unwavering commitment to economic stability and growth is expected to determine Zimbabwe’s ability to overcome its economic challenges and achieve its full potential. With sustained efforts and a focus on long-term strategies, Zimbabwe can hope to emerge stronger and more resilient than ever before.