Flush out the big dealers
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