Forex Dealers In Panic Mode As Rates Tumbles

Parallel foreign currency exchange market rates have tumbled with US$100, which was being exchanged for up to $600 midday yesterday now trading for as low as $200.

This follows government announcement that it had secured financial support from the Afrexim Bank to guarantee the 1:1 convertibility value of Real Time Gross Settlement (RTGS) balances into the United States dollar on Wednesday.

Forex Dealers In Panic Mode As Rates Tumbles

“Over and above the Nostro Deposit Protection Guarantee from Afreximbank, we are also reinforcing Nostro foreign currency accounts with a statutory instrument to guarantee that these are private deposits, and neither the Reserve Bank nor government has any access to them.

“Government recognize concerns surrounding RTGS deposits, and we commit to preserve the value of these balances on the current rate of exchange of 1 to 1, in order to protect people’s savings,he said.

In an interview with 263Chat a number of illegal foreign currency dealers in Masvingo were in panic mode after they bought the US dollar at high rates hoping to make a kill from further gain.

“I can’t believe this, as you know we are close to South Africa things have been going well with us,we had access to foreign currency especially the rand and the US dollar.

“For the past days we made a lot of money only to be surprised yesterday that rates are going down,l have a lot of foreign currency which l can review the amount and if things remain like this l am in trouble,” said boss T well known forex dealer in Masvingo.

“I am receiving a number of calls from my clients it seems like they want to dumb the US for me so l am confused now.

“When l came across the message yesterday l thought it was a joke but ndikutoona kuti zvadhakwa that’s night be the end of the road for us but we have another survival skills,” said Tawanda Chigwanda.

“Chikuru kufema mdhara to me it’s still speculation,for as long as we do not have enough minerals to back up our economy reserve to garner forex it’s temporary.

“l think they are doing it in favor of the civil servants to get their salaries especially the army and after that we are back in streets,we will keep our US in our pillows,” said
one dealer who refused with his name.

In the past days, the country has seen a number of shops closing due to speculations that the bond note will be phased out without notice.