A MONTH-LONG blitz by authorities to curb the parallel market for the country’s new gold-backed currency, the ZiG, is driving forex business off the streets and into banks.
This comes after the government imposed stiff fines for not doing transactions at the official exchange rate of the ZiG, which was introduced in April this year.
“The parallel market is not as loud and visible as it was before the latest blitz,” said Lawrence Nyazema, the president of the Banker’s Association of Zimbabwe. Lenders are seeing “an uptick in formal market activity,” he said. – Bloomberg