"Kenias Mutsenha had long ceased using his Zimbabwean local currency bank account, abandoning it for one trading in US dollars, as many in the economically volatile country prefer dealing with more stable foreign currencies. But when he took on consultancy work in Harare this year and a client needed to pay him in Zimbabwe Gold, or ZiG, currency, he returned to the bank to reopen his account."
"As a result, people flock to Harare's central business district (CBD), where there is a thriving black market foreign exchange trading operation. Since the launch of the ZiG last year, the government has been clamping down on informal currency dealers. But this has only created a situation where the suppliers find new avenues to explore as Mutsenha discovered that day."
Economic volatility in Zimbabwe has pushed many people to prefer US dollars over the new Zimbabwe Gold (ZiG) local currency. Government institutions require ZiG, but banks have insufficient ZiG notes because the central bank has not released enough cash while promoting a cashless transition. Cash shortages force people to seek local currency on the street, fueling a thriving informal black-market forex trade in Harare's CBD. The government’s crackdowns on informal dealers have driven suppliers to new, secretive channels. People with disabilities, like a wheelchair user, participate in and depend on the risky, lucrative street currency trade.
#zimbabwe-economy #zig-currency #informal-forex-market #cash-shortages #disability-and-informal-economy
Read at www.aljazeera.com
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