Govt supplements resources for the FIU amidst exchange rate blitz

Written by on May 20, 2024

The government is cracking down on illegal foreign currency trading and stepping up enforcement of exchange rate regulations after the Ministry of Finance, Economic Development and Investment Promotion has empowered the central bank’s Financial Intelligence Unit (FIU) with additional resources to more effectively target violators.

Since the introduction of the new ZiG currency in April, hundreds of illegal money changers have been arrested, and bank accounts frozen. The government aims to curb speculation and stabilize the currency.

Authorities are also addressing unfair pricing practices by businesses. Meanwhile, the previously allowed 10% exchange rate buffer for pricing goods has been eliminated. Businesses must now use the official willing-buyer-willing-seller rate. The FIU will be tasked with enforcing these regulations throughout the supply chain, from manufacturers to retailers.

While some residents have yet to receive ZiG notes and coins, the government is urging its use and warns of fines for businesses exploiting the currency shortage. Public transportation operators struggling with lack of change have resorted to using alternative tokens.

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