Source: Punish currency speculators — Cross | The Herald June 13, 2019
Mr Cross Fidelis Munyoro Chief Reporter
Economist and former MDC official Mr Eddie Cross says Zimbabwe’s economic fundamentals are now sound and there is no need for speculators to continue with their wayward behaviour on the foreign currency parallel market which is affecting the poor.In an interview with The Herald yesterday, Mr Cross urged the Government to take stern measures to contain the forex parallel market that has brought anguish to the majority.
The prevailing volatility of the parallel market is blamed on speculators for influencing the exchange rate without economic justification.
Mr Cross said if macro-economic fundamentals were constant, as the situation on the ground shows, the rates should not exceed RTGS$4 to US$1.
“The currency speculators are manipulating the exchange rate and are using the opportunity created by these activities to make millions at the expense of all Zimbabweans.
“There is no justification for the current open market exchange rates. The economic fundamentals here are now sound and in my view rates should not be above 4 to 1.”
There have been loud rumblings from the public against deep-pocketed currency manipulators who are making life unbearable for people.
Most people are now unable to access basic commodities because their buying power has been eroded.
Mr Cross urged Government to intervene and rescue the public from currency speculators.
“Government has to take action to eliminate this activity and corrective action could correct matters in a few days,” he said.
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COMMENTS
Eddie Cross must be having a senior moment (or two). The macro-economic fundamentals are indeed constant – in constant chaos. Even an idiot knows that a parallel market can only function when the official version is dysfunctional.
Then you must lock up all the Merc driving bankers in Zimbabwe Eddie – I think you are taking leave of your senses now – maybe you spent too much time under Ian Smith’s brand of capitalism ?
Wake up Eddie! The parallel market is the only place where people can get hard currency. The parallel rate is the real rate.
The official rate is only for people who have connections in high places. This is what you should be complaining about
Cross, you seem very cross with all this and want people arrested. Now, start with the ones known to all, banks and central bank, who have wantonly moved the rate from 1:1 through 2:5 and now 5.8. Show me a stable country where that happened in such a short space of time. This is the deep seated evil happening before our eyes. Parallel market like in all nations looks at all this and also adjusts relatively. If official market can retreat, so will the informal market. Cause is the real market, its shortages and unjustified changes. Blank market is an effect. Please fix the causes, law enforcement can deal with the errant black market.
Old Mutual plc trading on the Zimbabwe Stock Exchange has gone up 76 % this year-( from 795 cents up to 1400 cents RTGS money). So do you think we should shut down the stock exchange Eddie or maybe arrest all those employees at Old Mutual.
I think you are a bit chembere now sekuru and maybe time to put your command (ie Cuba) economics ideas to bed – the only way to go is the free market – people need USD and commercial banks or the Reserve bank are unable to provide USD at the silly rates they are advertising – after all mielie cobs, boiled eggs and bananas are all in the fee market.