The Zimbabwe Cross Border Traders Association has called on
Finance and Economic Development Minister Mthuli Ncube to investigate the
source of bond notes and other currencies that have flooded the black market in
border towns.
In an interview yesterday, the organisation’s president Dr
Killer Zivhu said the liquidity crisis in the country had hit hard on cross
border traders and ordinary Zimbabweans.
He said it boggles the mind that border towns were flooded
with millions of bond notes and other currencies, which were not circulating in
the formal system.
Dr Zivhu said the Finance minister and officials at the
Reserve Bank of Zimbabwe (RBZ) should implement urgent reforms to deal with the
economic situation.
“We are concerned with the situation where ordinary
Zimbabweans countrywide are affected by the liquidity crisis and the fact that
there is no money in the banking system yet the black market in border towns is
well supplied,” said Dr Zivhu. “It is common cause that money changers have
been in existence for a very long time and these need to be incorporated into
the fiscus.
“Government should encourage these people to form
consortiums and open bureau de changes.
“Under such a set-up it (Government) can be able to
regulate exchange rates, rather than the current scenario where those with dip
pockets are determining the rates willy-nilly.
“We are willing to work with central Government and the
Minister of Finance in addressing the cash crisis,” he said.
Dr Zivhu said most economic activities were cross
border-related and that these have been strongly affected by the cash
shortages.
He said in some cases children of cross-border traders were
dropping out of school as a result of the financial strain.
Dr Zivhu said it was important for Government to review the
duty regime and introduce incentives to entice people to pay tax.
“There should be an incentive for people to pay duty at
affordable rates especially for those importing the products we don’t manufacture,”
he said.
“Indications are that smuggling activities are rampant
across our border as people try to avoid paying excess duty or they cannot
acquire the requisite permits to import basics due to red tape.” Herald
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