Flush out the big deal­ers

The Sunday Mail (Zimbabwe) - - COMMENT -

EDI­TOR — There is one thing that I took note of from events that tran­spired last week.

Govern­ment and law en­force­ment agen­cies made a bold move and started ar­rest­ing black mar­ket forex deal­ers, a move that re­sulted in the il­le­gal ex­change rate tum­bling.

It is now high time that they started go­ing for the big fish, the in­di­vid­u­als who are sup­ply­ing th­ese street deal­ers with the cash.

If the cash pipe­line is stopped at the source, there will not be that much cash float­ing around to trade with on the black mar­ket, and this will cer­tainly go a long way in deal­ing with the il­le­gal forex trade.

As long as the street deal­ers have less bond notes or less elec­tronic money, they will end up of­fer­ing less to those who will want to burn their forex, which means even­tu­ally things will get back to nor­mal.

As things stand, even if the coun­try was to get a loan to ease cash short­ages, the same peo­ple who are fu­elling the il­le­gal forex trade will try and cap­i­talise on the new funds, so the best way is to get rid of this rot.

Govern­ment should also in­tro­duce tough laws that will ac­tu­ally dis­cour­age peo­ple to par­take in th­ese prac­tices.

For now, you are mov­ing in the right di­rec­tion, but there is need to turn up the heat so that you smoke out the big sharks.

Money Mar­ket Guru, Harare

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