RBZ to tighten noose on OneMoney

LIVINGSTONE MARUFU


Reserve Bank of Zimbabwe governor John Mangudya’s ambush raids on
illegal forex trade faces a stern test as the government-owned mobile
payment platform, OneMoney, operates untamed.


The development comes after RBZ reduced monthly limits on banks
and EcoCash as part of strategies to stem rent-seeking behaviour
and speculative tendencies which continue to destabilise and devalue
the local currency.


Prior to the March 30 lockdown, the domestic unit official rate
remained fixed at 25 to 1 against the US dollar while the parallel market
rate is trading as high as 1:73.


Mangudya has put some strings on the banks to transact a maximum
of ZWL$100 000 per month and suspended a number of EcoCash
agents’ lines for moving loads of money.

However, economists say this will face a stern test.


Last time when Mangudya tried to tighten screws on gold smugglers,
Zanu PF youths called for his dismissal.


Mangudya told Business Times the central bank is plugging all possible
holes that are causing the exchange rate to soar.


“We have come up with the number of initiatives to stop the persistent battering of the domestic currency by rent-seeking behaviour
on the parallel market and some of the strategies include dealing with
transactional limits and closely monitor agent lines,” Mangudya
said.


“We have dealt with those who abuse agent lines and banks; we
shall deal with other platforms that continue to operate openly. Just
give us time we will leave no stone unturned.”


Soon after the RBZ-EcoCash fight, the mobile payment platform
has been on the downward side as it continues to trade below 1:55
against banks’ rate of 1:75.


Despite enjoying high rates, banks will not push high volumes
due to ZWL$100 000 monthly limit, leaving OneMoney as the
transactional platform of choice.


Economic analysts said most of the EcoCash dealers whose lines were
closed have crossed to OneMoney.


On the OneMoney platform, US$ is trading at 1:67.


Harare based economist who preferred anonymity said: “Mangudya and his Monetary Policy Committee can come up with good strategies like reining in
on OneMoney but given that it’s a government controlled thing, their
chances of dealing with the platform are next to zero because their hands
are tied and are serving at the mercy of H.E (Mnangagwa).


“I bet my last cent that he may come up with a press statement but
will not implement it.”


Mangudya said Zimbabwe was getting significant inflows of foreign
exchange from gold, tobacco and other sources to support its import
need but the Covid-19 pandemic has kept the exchange rate and the
currency under pressure.


Economists said the depreciating of the local currency since its
introduction, last year was due to underlying problems that include
confidence crisis, speculation, policy shortcomings and the domestic
economy’s current structural challenges.


RBZ’s Financial Intelligence Unit last week suspended all mobile money
agents and directed the network operators to implement proper
know-your-customer evaluations to make sure only genuine businesses
use the platforms.

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