A 20-year-old Harare man, Bernard Rufaro Nyamande, was sentenced to 12 months imprisonment by the Harare Magistrates’ Court on charges of unlawfully dealing in foreign currency.
According to a statement from the National Prosecuting Authority (NPA), the incident occurred on April 18, 2024.
Police officers who were conducting surveillance spotted the Nyamande engaging in foreign currency dealings outside the OK Machipisa store.
The police officers then set a trap, approached the accused, and proposed to exchange US$30 for Zimbabwe Gold (ZWG435).
After some negotiations, Nyamande transferred the requested amount of ZWG435 to an account used by the officers for the sting operation and received US$30 in return.
The other police officers monitoring the transaction then immediately arrested the accused person.
Nyamande pleaded guilty to the charges and was sentenced to 12 months of imprisonment, with 6 months of the sentence suspended for 5 years.
He will serve the remaining 6 months of the sentence effectively.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

A 20-year-old man in Harare was jailed for 6 months for trading foreign currency illegally. The incident happened in 2024 outside a store. Some police officers saw him trading and caught him in a sting operation. The man admitted to the charges and was sentenced to 12 months in jail, but he will only serve 6 months. He will be on probation for 5 years. Trading foreign currency without permission is against the law in Zimbabwe.

Money Changer Jailed 6 Months For "Unlawful Foreign Currency Dealings"

A suspected money changer was acquitted by the Masvingo Magistrates Court on Wednesday after spending 30 days in remand prison.
<a href="https://masvingomirror.com/money-changer-acquitted-after-30-days-in-remand-prison/">The Mirror</a> reported that Michael Zumba was arrested on suspicion of dealing in foreign currency and subsequently spent 30 days in pre-trial detention.
Zumba’s three-year-old daughter died last week while he was in detention.
Masvingo magistrate Nomagugu Sibanda ruled that the police officers who gave evidence were not credible witnesses as they gave conflicting information in court.
Zumba was represented by Knowledge Mabvure of Chihambakwe Law Chambers.
Zumba was arrested at Yeukai Business Centre in Mucheke and police officers found US$20 and ZAR20 in his possession.
Magistrate Sibanda pointed out that one of the police officers said that they heard Magugu shouting for foreign currency customers from a distance while the other said they saw him selling airtime.
Zumba was released from custody last week by the court to attend the funeral of his child.
Progress Magara prosecuted.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

"Money Changer" Acquitted After 30 Days In Remand Prison

Justice, Legal and Parliamentary Affairs Minister Ziyambi Ziyambi has said relatives and children of political heavyweights were the ones destabilising the exchange rates through foreign currency manipulation.
As reported by <a href="https://businesstimes.co.zw/political-heavyweights-targeted-in-crackdown/">Business Times</a>, Ziyambi said there will be no sacred cows in the government’s fight against criminals contravening the Exchange Control Act. Said Ziyambi:
<blockquote>
We have found out that those who are causing trouble [in the market] are bigwigs’ children but this time we are not leaving perpetrators of forex manipulation because he or she is a political heavyweight’s son or daughter. We are arresting and sentencing them [if they are found on the wrong side of the law].
</blockquote>
This follows the arrest of Neville Mutsvangwa, son of ZANU PF spokesperson, Chris and Monica Mutsvangwa, who is the Women’s Affairs, Community, Small and Medium Enterprises Development Minister.
Neville was arrested a fortnight ago at his Mt Pleasant home in Harare by detectives from the CID commercial crimes unit on allegations of contravening the Exchange Control Act by illegally trading in foreign currency.
He remains in custody ahead of his bail ruling by the High Court on Monday next week.
Business Times reported sources as saying the ruling elites are taking cheap forex from local financial institutions and feeding it into the parallel market through their children. Said the source:
<blockquote>
We have a situation whereby the majority of the top chefs’ children are in the business of illegal forex dealings, gold smuggling and money laundering but nothing has been done to them.
With Minister Ziyambi saying the children involved in illicit deals will be dealt with, we hope there will be a change.
We don’t know what the police meant when they said they want the members of the public to give them information about those supplying money changers with money when they have the databases of everyone and can access the bank accounts and information from everywhere. They are fearing to engage the real godfathers of illicit deals.
</blockquote>
However, some economists say the arrest of forex manipulators will not stop the depreciation of the Zimbabwe gold (ZiG) as the market does not have confidence in the new currency.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Children Of Political Heavyweights Feeding Forex Black Market - Ziyambi

A 31-year-old Harare man who was arrested during the ongoing blitz against illegal money changers has challenged his prosecution arguing that no offence was committed as the US dollar is legal tender in Zimbabwe.
According to <a href="https://www.zimlive.com/article/dealing-in-foreign-currency-does-not-break-any-law-biti-tells-court/">ZimLive</a>, Albert Dzikamai Chekure, a father of two, was milling around at the corner of Angwa Street and Nelson Mandela Avenue in Harare on April 18 when he was approached by an undercover female police detective who wanted mobile phone airtime for ZiG130, Zimbabwe’s new currency, in exchange for US$10.
He used his phone to purchase airtime from his bank and received a US$10 note from the police officer.
Chekure, who is employed by the Harare City Council as a meter reader, was promptly arrested and charged with the crime of contravening exchange control regulations which prohibit the purchasing or selling of foreign currency without approval.
He is now among over 400 people held without bail in prisons across the country for the same crime after bail was denied by Harare magistrate Ethel Chichera.
Chekure appealed for bail at the High Court after his initial bail request was turned down by the magistrate who ruled that he faces a very serious offence and the possibility of a lengthy custodial sentence.
Former Finance Minister Tendai Biti, a human rights lawyer, has taken up Chekure’s appeal at the High Court.
Chekure argues that he and hundreds of others are being held on an invalid charge. He maintains that the United States dollar is legal tender in Zimbabwe until 2030 and therefore cannot be regarded as foreign currency.
In the bail application filed on May 16, Biti argues that Chekure should not have been denied bail as the charge is “non-existent.
Biti, in a 37-page court application, said foreign currency means a legal tender of another country and USD is a legal tender in Zimbabwe so no offence was committed. He said:
<blockquote>
Put in simple terms, foreign currency simply refers to legal tender of another country. Thus, it is unlawful for any Zimbabwean to transact and deal in foreign currency defined to mean the legal tender of another country without exchange approval.
However, the US dollar that the appellant (Chekure) dealt with is not a foreign currency in Zimbabwe rather it is legal tender in Zimbabwe…
Once it is accepted that the US dollar is a currency and is legal tender in Zimbabwe, it is not foreign currency for the purposes of use in Zimbabwe by way of Section 44A of the Reserve Bank Act as read together with Section 2 of the Exchange Control Regulations.
</blockquote>
Biti submitted that innocent citizens are being criminalised as a result of the mismanagement and mishandling of the economy by the authorities. He said:
<blockquote>
Chekure is fully and gainfully employed at the City of Harare… his entire salary is paid in RTGS or ZiG yet his obligations are monetised in US dollars.
For instance, he rents a house in Glenview 7 where he has to pay rent in the sum of US$ 120.00.
The school fees of his child are required in US dollars.
He does not own a car and riding an omnibus to and from home requires payment in US dollars in the sum of US$ 3.00 per day.
The accused therefore transacted to obtain US dollars for his survival.
The State and the country’s laws are thus criminalising the innocent activities of the accused and millions of other Zimbabweans who are in exactly his position.
</blockquote>
Biti also argued that USD was not readily available in banks, with only a few privileged powerful people able to purchase US dollars at the Dutch Auction system until recently. He said:
<blockquote>
There was no provision for ordinary citizens such as the appellant to purchase US dollars.
It is thus ridiculous that the Government creates a situation where the economy is dollarized, businesses and the Government itself demand payment in US dollars yet citizens are paid in a local currency that Government itself and businesses refuse.
The appellant is not a criminal and should therefore be released on bail.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Suspected Money Changer Challenges Prosecution, Argues USD Is Not Foreign Currency In Zimbabwe

Illegal money changers have vowed to continue their operations despite a clampdown on foreign currency trading on the parallel market.
The police have arrested scores of money changers across the country since the launch of the Zimbabwe Gold (ZiG) currency last month.
On its launch, the ZiG rate was pegged at a rate of US$1: ZiG13,56 but the rate has since jumped to ZiG20 to the United States dollar on the parallel market.
Vice President Constantino Chiwenga recently issued a chilling warning to illegal money changers, saying those involved in the trade risk losing their limbs.
<a href="https://www.newsday.co.zw/local-news/article/200026253/forex-traders-still-in-the-game">NewsDay</a> interviewed several foreign currency dealers who dismissed Chiwenga’s threats.
A foreign currency dealer in Harare said they have devised other means of trading in United States dollars. He said:
<blockquote>
We are all in this mess together. The police can come to assault us because of the directive by Chiwenga but after work, they will come to us asking for the US dollars.
We are not on the streets but we now have other means of trading and this can be done over a phone call and what we are doing is not being seen on the pavements because we are now cautious in everything we are doing.
In a few weeks, we will return to the streets again, we are just like vendors and we also want to earn a living.
</blockquote>
Another forex dealer said illegal forex dealing will only be addressed if the government ensures that both the rich and poor have access to US dollars. He said:
<blockquote>
If the government wants everything to be normal, everyone should now have the US dollar regardless of whether they are rich or poor.
If you want to look at it the US dollar is making rounds among the rich people only and that is why this is difficult for most of the people.
</blockquote>
The illegal money changers alleged that some police officers were taking bribes from some money changers upon arrest.
However, Zimbabwe Republic Police (ZRP) spokesperson Assistant Commissioner Paul Nyathi dismissed the allegations. He said:
<blockquote>
I am not even aware of that and those people with evidence should come forward so that we can carry out our own investigations.
</blockquote>
Meanwhile, economist Gift Mugano said the Government was to blame for exchange rate volatility and not money changers. He said:
<blockquote>
I do not want to sound as if I am fighting for the black market. The biggest challenge we have is Treasury which pumps liquidity into construction works.
If you arrest the money changers at Copacabana you are not doing anything. These people are jobless and the government is marking the wrong man.
The wrong man is the Finance ministry which is using the wrong model to finance infrastructure; you cannot finance infrastructure with cash.
The money changers at the Road Port are just part of the ants on a mountain and the mountain is Treasury.
Do you think the government has enough police to arrest seven million people because almost everyone has been changing money on the parallel market?
</blockquote>
Since the Government introduced the multi-currency system several years ago, illegal foreign exchange trading has become commonplace.
This shift is due to the fact that many employees receive their wages in the local currency, while certain ggods and services—such as fuel and rentals—are solely transacted in foreign currency.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Forex Dealers Vow To Return To The Streets Within A Matter Of Weeks

The Financial Intelligence Unit (FIU) is plotting a crackdown against individuals and companies allegedly involved in exchange rate manipulation.
When the Zimbabwe Gold (ZiG) currency debuted two weeks ago, the rate was ZiG13.56 per US$1, but illegal money changers are now trading at ZiG20: US$1.
FIU director Oliver Chiperesa told <a href="https://businesstimes.co.zw/fiu-plots-massive-crackdown/">Business Times</a> this week that the unit has identified wholesalers and manufacturers involved in exchange rate manipulation. He said:
<blockquote>
For our part as FIU, we have identified traders, especially wholesalers and manufacturers who are either not accepting ZiG or are putting an unjustified premium on the rate, and we are taking stern action on those.
We have given them a warning to comply by the end of the day today (Wednesday) after which we will be freezing their accounts and fining them.
Some are claiming they are still configuring their systems so are not yet accepting ZiG. We have told them that if it’s taking them that long to configure, they should stop trading until they are in a position to accept both currencies.
</blockquote>
Chiperesa said FIU is monitoring bank account activities to look for any infractions. He said:
<blockquote>
If we catch them, we will permanently freeze the illegal forex dealers’ accounts. We acknowledge that the parallel market is still there but generally, it is within the acceptable range of probably 10% of the official rate and that’s normal.
Whilst we don’t tolerate such issues, it’s still normal in an economy. But when we see some serious distortions we step in to investigate and take steps.
We are already in the streets before the money changers are too many in the streets, we don’t want to wait for the exchange rate to go beserk.
Apart from clearing them from the street, we are monitoring bank transactions so that we may identify red flags with some of the transactions occurring.
If we see transactions undertaken repeatedly in the same shop or outlet, we will permanently freeze those bank accounts.
We democratically allow people to open accounts with as many banks as one can but those with more than three accounts will certainly come under scrutiny.
When you see someone with four accounts there is something amiss, we will identify those as well. The dealers try to transact on many platforms to avoid being noticed but we are certainly now on them again on too many accounts.
</blockquote>
Zimbabwe Republic Police (ZRP) spokesman Assistant Commissioner Paul Nyathi last week said they were waiting for the go-ahead to launch the blitz on illegal money changers. He said:
<blockquote>
We are working together with the Reserve Bank of Zimbabwe to end this practice and the law will take its course without fear or favour.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Financial Intelligence Unit Plots Crackdown On Money Changers

Numerous illicit money changers have allegedly vacated their customary trading locations in Bulawayo since the Reserve Bank of Zimbabwe (RBZ) introduced the new gold-backed currency, Zimbabwe Gold (ZiG).
The central bank has asserted that ZiG’s value will be secured by both the quantity and worth of precious metals, along with the foreign currency reserves it maintains.
Unlicensed currency traders interviewed by the <a href="https://www.chronicle.co.zw/foreign-currency-dealers-ditch-trading-spots/">Chronicle</a> on Monday expressed apprehension due to the ZiG’s recent introduction.
Most of them confirmed that they ceased trading last Friday, while the minority who continued are exclusively dealing in US dollars and South African rand.
A small group of money changers lingered near their customary spots, close to Bootleggers Bottle store and Tredgold Building—locations that were bustling hubs before the ZiG’s debut.
A money changer who preferred anonymity told the Chronicle that Friday’s Monetary Policy Statement (MPS) caught them off guard, leaving their business seemingly inconsequential. He said:
<blockquote>
Since the announcement of the new currency, most of us have had to wait for financial institutions and service providers to reconfigure their systems to encompass the ZiG. Since Friday, we have been doing nothing.
</blockquote>
Another money changer, who also preferred to remain anonymous said he was waiting for financial institutions to reconfigure their systems. He said:
<blockquote>
Nothing has changed and the game is still the same. For now, we just wait for the systems to be reconfigured to suit the ZiG and then we will be back on the streets.
</blockquote>
An illegal money changer in Beitbridge, primarily handling US dollars and rand, was minimally impacted by the ZiG launch. He said:
<blockquote>
For now, we are converting either the rand into US dollars or vice versa only until there is closure on the newly introduced currency issue.
However, we haven’t felt the change considering that we are in a rand economy in this town where the rand is the largest currency of trade.
</blockquote>
Many individuals who held RTGs in their accounts found themselves stranded when shops and service providers across the country ceased accepting the local currency. This situation arose because financial institutions were transitioning to the Zimbabwe Gold (ZiG).
RBZ Governor John Mushayavanhu set a deadline for mobile network operators (MNOs) to ensure a smooth transition for their customers. By Monday, April 8, all MNO customers were expected to effortlessly switch from ZW$ wallets to ZiG wallets.
Once the local currency is re-denominated as ZiG, domestic traders are required to consistently adjust their pricing strategy to align with the currency reforms introduced by the RBZ.
Entities other than banks and MNOs were given a seven-day ultimatum starting from the previous Friday. 
Their task was to configure their systems to conduct business using the new ZiG currency.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Money Changers Abandon Trading Spots

An unfortunate Bulawayo man is facing arrest after he went to report a crime to ZRP Bulawayo and was told the crime he was reporting was committed while he was also committing a crime, the Chronicle reports.
Allan Majaha Sibanda approached ZRP after he was defrauded ZWL$120 000 by one Givemore Mapuranga after they connected on a WhatsApp foreign currency exchange group. Sibanda was then told he had committed a crime by buying foreign currency on the black market.
The incident was confirmed by ZRP Bulawayo Spokesperson Inspector Abedinico Ncube who said:
<blockquote>On 12 July 2020, the complainant, Allan Majaha Sibanda from Bulawayo who is a member of a WhatsApp group of illegal foreign currency dealers in the city received a message that someone was looking for a float of $120 000 in exchange of $1 400 in American dollars.
He responded to that message, which had been sent by one Givemore Mapuranga. They got into a deal and the complainant then as agreed sent $120 000 to the accused person.
Upon receiving the money, the accused person cut all ties and contact with the complainant, switched off his phone and stopped responding even on his social media accounts
While the complainant lost his money in this case, both he and the accused person have a case to answer. They were both engaged in illegal forex dealing. The complainant got his money stolen during an illegal transaction.
So as police we will do our job and arrest both the complainant and accused person as both their actions breached the law. People get into all sorts of shady dealings and it is all good. When they turn against each other in their illegal transactions, they now want to involve the police. The long arm of the law must reach out to both of them in respective degrees</blockquote>
More: <a href="https://www.chronicle.co.zw/forex-fraud-victim-faces-arrest/">Chronicle </a>

ZRP To Arrest A Man Who Was Defrauded By A Money Changer For Buying Forex Illegally

The 21-day national lockdown which commenced on March 30 has not stopped illegal money changers from conducting their business, with most of them having retreated to residential suburbs.
25-year-old Philip Mundozo of Kambuzuma suburb in Harare told Al Jazeera that his customers now contact him telephonically and come to his house to conduct transactions. He said:
<blockquote>I cannot go to town, but that has not stopped me from doing my work. Customers call me and come to my house to trade.
… I just make sure that when they [customers] come I observe social distancing [because] in as much as I need money to sustain my family, I don’t want to get infected or to infect them.</blockquote>
Before President Emmerson Mnangagwa issued the 21-day stay-at-home order, Mundozo was operating from Harare’s popular bus terminal – Copa Cabana.
Muzondo, like other money changers, charge fees for “cash-in, cash-out services” that allow customers on the country’s mobile EcoCash platform to convert electronic balances in their mobile money wallets into hard currency, and vice versa.
Zimbabwean authorities outlawed the use of the people’s choice of currency, the United States Dollar in June 2019.
However, following the coronavirus global pandemic outbreak, the country’s monetary authorities allowed those with “free funds” to transact in foreign currency but fixed the exchange rate at US$1: ZWL$25 far below the “real” convertibility which is <a href="https://www.zimrates.com/" rel="noopener noreferrer" target="_blank">currently 1:49</a>.
<h4>More: <a href="https://www.aljazeera.com/ajimpact/zimbabwe-lockdown-money-changers-busy-200414215412998.html" rel="noopener noreferrer" target="_blank">Al Jazeera</a></h4>

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