A lot of forex is circulating in the informal sectors with experts putting the figure at US$5 billion. This is hard currency not finding its way to the formal banking sector and this is a huge opportunity cost.
What is worrisome is the lack of appetite to attract formal banking through incentives such as interest and other benefits such as overdrafts and loans for the informal sector. Add to this punitive bank charges which means if you bank US$1000, the money will be eaten by bank charges.
And the implications? Banks are becoming a no go area for many informal businesses with most preferring the mattresses banking system! A look at media reports of robberies and scams shows that many are losing hard earned monies with cases rising on a daily basis.
Some time back we advocated for the establishment of bureau de changes but the proliferation of money changers on the streets has adversely impacted their operations. Money changers have no overheads such as office rentals, security, employment costs and others.
As a result many bureau de changes are closing shop with some converting to money lenders.
Of note is the increased risks of changing your funds from the streets. There are instances of bank transfer reversals or being handed fake currencies. You exchange US$10k on the street, get a bank transfer of ZWDL 130,000 and happily leave after confirmation of funds in your account.
Is all Ok? Not really as the bank can reverse the amount deposited in your account and when you try to get in touch with the money changer—his phone now unreachable! Because the transaction is illegal, there are no avenues for recourse and as they say on the streets—zvavharana!
You change your money and get an Ecocash deposit and like in the case above—similar loss results.
Be wary of money changers thronging most Whatsapp groups, this has become a haven for scammers who offer too good to be true rates. They are taking advantage of the fact that one cannot report to the police for recourse.
Do not click any send to your Facebook Inbox account—your inbox is now a high risk area as criminals prefer to lure you in the privacy of your inbox. Phishing normally happens away from the public glare although of late our Facebook forum has been struggling with scammers who publicly post their Telegram links.
Secure your accounts with 2 pin codes –that is requirement to log in to your accounts using an sms send to your phone. However this is not enough as scammers seem to be finding ways to break through the 2 pin code system.
Keep following the public media which is doing a sterling job in highlighting and exposing cash related risks.
