Sixty-five suspected illegal forex exchange dealers operating on the streets of Harare were arrested last week and were brought before the Harare Magistrates Court on Saturday.
Over the weekend, state media released photographs of the illegal money changers outside the Harare Magistrates Court after their arrest.
The National Prosecuting Authority (NPA) on Monday 22 April 2024, confirmed the arrest of the suspects, saying they were charged with contravening section 5(1)(a)(ii) of the Exchange Control Act [Chapter 22:05] as read with section 4(1)(a)(1) of the Exchange Control Regulations SI 109 of 1996 “Dealing in foreign currency”. The NPA added:
The accused persons, some of whom were found in possession of point of sale (POS) machines and various credit and debit cards, were apprehended at various sites and points across Harare.
They appeared in court on the 20th of April and were remanded in custody to the 22nd of April 2024 for bail applications.
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According to alocal publication, the 65 suspects are not set to spend another night behind bars as the state will be making written submissions to oppose bail by the end of today and the defence will also make written submissions.
The report added that bail ruling will be handed on the 23rd and 24th of April for most cases heard so far.
Illegal forex trading is a thriving industry in Zimbabwe due to high unemployment and the use of several currencies, mainly USD, ZiG, and ZAR (Rand) for local transactions.
Furthermore, some goods and services, such as fuel and rentals, are paid exclusively in USD and this drives the majority of citizens to the streets to buy forex.
Some reports claim that some of the dealers that are routinely arrested on the streets are mere runners for the real drivers of the industry, untouchable, faceless well-connected people with access to billions of cash in local currency.
The forex black market offers more favourable rates than the official exchange. Illegal currency changers are allegedly offering around 15 ZiG (buy rate) and 20 ZiG (sell rate) to the US dollar.
