Harare, Zimbabwe – The ongoing crackdown on illegal foreign currency trading in Zimbabwe continues to yield convictions, with the latest case resulting in a prison sentence for a Harare money changer.
Peter Rusere, 34, was last week sentenced to seven months imprisonment by provincial magistrate Ruth Moyo for violating the Exchange Control Act. The sentence, comprising a 12-month jail term with five months suspended on condition of good behaviour over the next five years, follows a sting operation by detectives.
The court heard that on September 18th, detectives, operating under a targeted operation against illegal money changers, approached Rusere with US$100 in marked bills. Their aim was to obtain the newly introduced Zimbabwe Gold (ZiG) currency. Rusere readily agreed to the exchange, offering a rate of US$1 to ZiG20. He then transferred ZiG800 into an Ecocash mobile money account provided by the undercover officers, leading to his immediate arrest.
Rusere’s case is not an isolated incident. The judiciary has been increasingly firm in its response to illegal forex activities since the introduction of the ZiG currency in April this year. Last month, another individual, Kudakwashe Welcome Maketo (24), received a six-month prison sentence, with three months suspended, for a similar offence.
Maketo’s conviction stemmed from an incident on August 1st, 2024, where police officers observed him at Kamunhu shopping centre in Mabvuku openly soliciting foreign currency exchanges. He offered a rate of US$1 to ZWG16 (Zimbabwe Gold) and received ZWG320 via mobile transfer in exchange for US$20. Upon arrest, Maketo was found in possession of five bank cards. The charges against him were brought under section 5(1)(a)(ii) of the Exchange Control Act chapter 22:05, alongside related regulations.
Another individual to face the consequences of illegal foreign currency trading was Ishmael Munashe Sakonda (29), also convicted by Magistrate Moyo last month. On July 29th, detectives, acting on a tip-off, approached Sakonda at Glen Norah B shops with US$20 as trap money.
Posing as customers needing ZiG currency for grocery purchases, they negotiated an exchange rate of US$1 to ZiG17 with Sakonda. Sakonda provided a bank card for a swipe transaction, receiving the US$20 in return. He was subsequently arrested, and the marked money was recovered.
The accused persons in all three cases were charged under section 5(1)(a)(ii) of the Exchange Control Act chapter 22:05, as read with section 4(1)(a) of the Exchange Regulations SI 109 of 1996, as amended by section 2 of Statutory Instrument 122A of 2017 and section 3 and 4(2) of SI 245 of 2018, which specifically addresses “dealing in currency.” The consistent application of these regulations highlights the government’s determination to curb illegal foreign currency trading and maintain stability within the financial system.
The sentences handed down in these cases serve as a stark warning to those involved in illegal forex dealings. Rusere’s sentence comes at at time when Zimbabwe has devalued its ZWG currency from 1:14 against the US Dollar to 1:24.39, a move that left millions of citizens nearly 50% poorer.
The authorities are clearly demonstrating their commitment to enforcing the law and protecting the integrity of the Zimbabwean dollar and the newly introduced ZiG currency.
The relatively short sentences, however, also suggest a degree of leniency, potentially indicating a focus on deterrence rather than excessively harsh punishment for first-time offenders. The inclusion of suspended sentences implies a willingness to offer a second chance to those who demonstrate genuine remorse and refrain from further illegal activities.
The ongoing operations targeting illegal money changers underscore the challenges faced by Zimbabwe in managing its currency and combating illicit financial activities. The government’s efforts to stabilise the economy and control inflation are clearly intertwined with its efforts to crack down on illegal currency trading.
