RESERVE Bank of Zimbabwe governor John Mangudya yesterday likened parallel market dealers to the coronavirus which is causing havoc to the economy.
Appearing before the Parliamentary Portfolio Committee on Budget and Finance chaired by Felix Mhona (Zanu PF), Mangudya said parallel market foreign currency dealing was an “asymmetric economic warfare now introducing a shadow parallel banking system driven on speculative behaviour under what are basically ‘ponzi-like schemes”.
“Mobile banking platforms are largely used as industry by foreign currency dealers whereby they sell foreign currency on ponzi-like schemes and they are making money from money.
Shurugwi South MP Edmond Mkaratigwa and Zvimba South MP Phillip Chiyangwa then suggested radical approach to dealing with the illegal money market by completely banning mobile banking and going back to basics and increase supply of bank notes.
Tatenda Mavetera (Zanu PF PR) said there was too much policy inconsistency which led to mistrust and hoarding, as well as preference to deal in the parallel market which offers higher rates than the formal money market.