Money changers derailing regional financial integration

Reserve Bank of Zimbabwe deputy governor Jesimen Chipika has accused illegal money changers of derailing regional financial integration efforts and promoting money laundering.

By Nokuthaba Dlamini

Chipika made the remarks during the ongoing regional workshop on cross-border payment systems in Victoria Falls.

She said components of regional integration include the introduction of real time gross settlement (RTGS), Sadc Integrated Regional Electronic Settlement System (SIRESS), but the existence of illegal money changers impeded the smooth running of the innovations and promoted money laundering.

“Challenges still exist in the operationalisation and uptake of these innovations. Without efficient and affordable cross-border transfer systems, the masses resort to informal means of sending money across borders. This poses a risk of exploitation to the vulnerable due to the capacity of such a system,” Chipika said.

“Furthermore, the existence of informal avenues upsets efforts to curb money laundering and terrorism financing. At the same time, inadequate regulatory frameworks, weak infrastructure and lack of interoperability all impede the process of interconnecting payment infrastructure. These challenges, if not hastily addressed, may derail ongoing efforts towards economic financial integration.”

She said strong mitigation and facilities needed to be put in place for private institutions to thrive.

“Market forces, as opposed to government intervention, have been the driving force of the emergency of the adoption of new payment services. However, without adequate incentives and strong risk mitigation measures, private institutions cannot be left on their own to penetrate new markets and push the frontiers of the financial service industry. The central bank as a regulator and facilitator needs to provide a level playing field that encourages innovation, competition, interoperability, consumer protection and financial inclusion.”

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5 Comments

  1. What are you doing as RBZ to stop money changers? #NOTHING …..
    You know why?
    Simple… Its because you are the ones who are buying the US dollar via the black market and you are the ones who sent money changers to the streets to get you foreign currency….. Imvura irikupinda mubucket rakaboorwa pasi,,, #HAIZARI…. That’s what you are doing with you policies, they are all meant to rectify something only in the short run… Same applies 1bond = 1USD. that only worked in the shortrun (1-3months) after that bhora musango. RBZ should be serious

  2. Zvakozvenyuhazvirehwimayivepi Mazivazvangumhakayakora

    Comment…Taura zvako Asinazita 2. Uye shamwari dzedu Chinese, Indians vanotengesa zvinhu zvavo zvose cash. Havasi kutevedza zvirikudiwa muZimbabwe. Asi apana zvavarikuitwa. Cash, apana receipt kana invoice. Pane kubhadhara mutero kunyika here apa? Kambani inonzi yabirwa $1 799 960 cash,
    yaiiteyi pakambani isingaende kubhanga? Madiyi kungonyarara muchiita zvinhu zvenyu makati zii. Pane kuita ruzha zvisina zvazvinobatsira.

  3. Spare us the agony of listening to rubbish Jesimen because most of those money changers do it on behalf of fat cats in higher govt offices.You know the the root cause yet you dont have the guts to say it.Afraid of the Zanu pf mafioso?

    1. These money changers are not doing in in dark places, but openly and nothing is happening to them. Where is the law enforcement agents who were quick to fine motorists for trivial issues like unclean vehicles. Along George Silundika Avenue, these guys are there by 7am ndokwave kubasa kwavo. At the corner of Speke and Sam Nujoma street most of these money changers seem to be runners for a lady who drives a green pajero with number plates stsrting with AAD4.. because you see this lady with wads and wads of cash. Where are they getting it. I think the government should be ruthless with these money changers. Mbavha dzinoba usiku dzinohwanda nekuti hadzidi kuonekwa, but these money changers are vene ridiculing those who earn an honest day’s wage, because I think they get more than us. If the central bank is that concerned, then they should act instead of telling us stories we already know. This is the problems with those in authority, you tell us stories and not providing solutions. You are put there at the top to provide solutions. Pedzai nyaya ye these lazy people vanoswera vachizambira zuva and then they are rewarded for doing nothing. If I was into politics, I would put this as part of my manifesto and then win on this. If the government fails to rein in these lazy money changers some of whom thrive on shady deals of fake money, then it would have failed for good. Let is be proved that the government and the central bank are not benefiting from these money changers by driving them out of business. Find the source, full stop. Zimbabwe can not be made to suffer because of such people.

  4. Kuwiriranakwanakakugarakunzwanana Garanewakomurudohamandishe

    Comment…Mumwe paakapinda panyanga akati, zvebond zvikakundikana
    anosiya basa. Nhasi uno Bond neUS$ i1 to 1 here? Asi nanhasi aripo. Idyayi mari makanyarara, ndimi mune kodzero yekurarama zvakanaka. Kana kusina zvekutaura musatambisa mari muchiita misangano.

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