Friday, November 03, 2006

Money from outside country dries up

Reserve Bank Governor Gono has banned money transfers from outside the country...
money that many Zim people rely on for basic food, often sent by relatives working abroad.

"....Gono last week banned sixteen Money Transfer Agencies (MTAs) accusing them of channeling funds received from the diaspora to the parallel market where rates are better than those offered by the government.

The MTAs were established in 2004 to enable non-resident Zimbabweans to remit cash back home through official channels.

The RBZ chief, tasked by President Robert Mugabe to turn around the fortunes of the country’s anaemic economy, said the cancellation of the transfer licences was meant to shore up the economy in its seventh straight year of recession. ...

The cancellation of the licences, described by analysts as Gono’s “ambush economics”, caught most agencies by surprise fuelling fears that some agencies will go underground and continue feeding the parallel market. ..

... until she finds a way of “beating” the system, Hungwe and thousands of other Zimbabweans are in mourning over the drying of this vital pipeline. - ZimOnline

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