Illegal Money Changers Resume Operations in Zimbabwe Amid Currency Transition
Illegal money changers in Zimbabwe have resumed their activities following a brief hiatus, as reported after the country’s introduction of a new gold-backed currency called ZiG in April 2024.
According to a report published in the East African newspaper, these currency traders have returned to the streets despite the ongoing process of transitioning to the new Zimbabwe Gold (ZiG) currency.
Despite the currency being available only electronically for now, the black market is already active, offering rates slightly higher than the official exchange rate.
ZB Financial Holdings reported that on Wednesday, the new currency was trading at 13.3437 ZiG per dollar officially. However, on the black market, rates were observed to be approximately 15 ZiG (buy rate) and 20 ZiG (sell rate) per US dollar.
An illegal currency changer operating at the Westgate Shopping Mall in Harare stated that despite concerns about law enforcement, they continue their operations.
They disclosed selling rates ranging from $1 to 20 or 21 ZiG, with buying rates between 15 and 16 ZiG per US dollar, varying based on transaction amounts.
The introduction of ZiG, Zimbabwe’s sixth currency since independence, sparked skepticism in the market. Some observers speculate that the move aims to address inflation by eliminating zeros from the old Zimbabwean dollar.
Despite its official launch at 13.56 ZiG to the US dollar on April 8, the currency’s value in the parallel market has seen a gradual increase, reflecting a different reality from its official valuation.
