Smoothen circulation of forex, businesses told

BY Owen Mandovha

Business and civic society have challenged monetary authorities to institute robust measures that compel economic players to increase the circulation of foreign currency in the economy.

Zimbabwe has recorded a phenomenal increase in foreign currency inflows over the course of the year, with statistics showing that diaspora remittances have surged by over 45% between January and September this year, compared to the same period last year.

However, this has not translated to an improvement in the circulation of foreign currency in the economy, with market watchers pointing to indiscipline and greed by unscrupulous retailers and traders who do not bank their proceeds.

Zimbabwe National Chamber of Commerce President, Dr Tinashe Manzungu urged businesses to be responsible by banking their proceeds to increase circulation of forex.

“There are retailers and wholesalers who trade on a cash basis in foreign currency and the unfortunate thing is that these are not banking money save for a few so you end up having restrictions at banks in terms of withdrawal despite the fact that the economy has witnessed a surge in forex inflows.”

The civic society also weighed in, with Secretary-General of the Zimbabwe Christian Development Council, Mr Jairos Dzvene rallying the business community to desist from evading formal banking channels.

“As a grouping of churches we urge businesses to be ethical and moral in their conduct and this involves banking their proceeds otherwise all efforts by Government to restore normalcy in the economy will be in vain.”

Financial institutions have of late tightened their cash withdrawal conditions owing to the artificial shortages of bank notes caused by errant business entities who are shunning the banking system.

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