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Zimbabwe imposes capital controls to stem currency’s slide

Published

3 years ago

May 8, 2022

BY RAY NDLOVU AND GODFREY MARAWANYIKA

Zimbabwe’s President Emmerson Mnangagwa has imposed capital controls in an attempt to control the currency’s rapid depreciation.

The Zimbabwean dollar has lost half of its value this year making it Africa’s worst performing currency.

Banks in the country have been ordered to stop lending with immediate effect “to minimise the creation of broad money that is prone to abuse for purposes of manipulating the exchange rate,” Mnangagwa said in a televised speech.

The move is meant to support the currency, amid a growing threat of the economy dollariszing for the second time since 2009 when the country last officially turned to the US dollars as hyperinflation soared.

Old Mutual, the largest insurer in the country, in its quarterly economic brief warned that dollarisation is inevitable to stabilise prices.

Annual inflation in April soared to 96.4% from 72.7%.

“Banks shall with immediate effect not process third-party country foreign payments,” the president said, referring to payments made to an entity overseas via another country.

“Third-party foreign payments are susceptible to illicit financial flows which prejudice the country of its hard-earned foreign currency resources.”

The new measures also reverse the administration’s propensity toward the US dollar which had the effect of undermining the local currency reintroduced in February 2019.

The state pays in part its employees salaries and Covid-19 allowances in the American currency.

It had also paid annual bonuses in US dollars last year.

In the southern African nation most payments from fuel to food, medicine and school fees are pegged in US dollars.

Multiple exchange rates of at least 350 to 420 per US dollar are readily available on the parallel market.

The local unit officially trades at 165.99 to the US dollar. – Bloomberg

Related Topics:Emmerson Mnangagwa Old Mutual Zimbabwean dollar

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National

Zimbabwe Republic Police officer faces charges for allegedly claiming to be ZRP boss

Published

16 hours ago

August 15, 2025

VicFallsLive

BY STAFF REPORTER

A Zimbabwe Republic Police (ZRP) officer appeared in court today facing charges of causing disaffection among police officers, procuring the use of a motor vehicle by fraud, and transmitting false data messages intending to cause harm.

Simbarashe Mandizvidza, an Assistant Inspector in the ZRP, was remanded in custody to Monday, when he will apply for bail.

According to the State, Mandizvidza on August 14, broadcast a video on his YouTube channel, Gondo Harishaye, claiming to be the head of the ZRP, despite knowing that Commissioner General Stephen Mutamba holds the position.

The State alleges that Mandizvidza’s actions were intended to cause disaffection among police officers, contrary to Section 30 of the Criminal Law (Codification and Reform) Act, Chapter 9:23.

Mandizvidza is also accused of procuring the use of a Ford Ranger vehicle by misrepresenting to Chief Inspector Chiteure that he had been instructed by Commissioner Makomo to use the vehicle for errands.

Furthermore, the State alleges that Mandizvidza transmitted false data messages on his YouTube channel, including claims that the ZRP Traffic section had been temporarily disbanded and that Chinese nationals must leave Zimbabwe within 48 hours.

The State indicated that it will oppose Mandizvidza’s bail application, citing the seriousness of the offenses and the need to protect the public interest.

The case continues on Monday.

In the community

Chief Mvutu installation underway

Published

1 day ago

August 15, 2025

VicFallsLive

BY NOKUTHABA DLAMINI

Hwange District is bracing for a historic event today as Chief Mvutu is officially installed as the new substantive chief.

The installation ceremony, which comes eleven years after the passing of Silibaziso Mlotshwa’s father in 2014, is featuring speeches, entertainment, and traditional greetings.

According to the programme, the ceremony will commence with the arrival of invited guests, followed by the arrival of distinguished guests.

The event will feature speeches by various dignitaries, including Richard Moyo, Minister of State for Provincial Affairs and Devolution, and Senator Chief Mtshane Khumalo, President of the National Council of Chiefs.

Other highlights of the ceremony include the investiture of Chief Mvutu, the paying of allegiance by village heads, and the presentation of gifts.

The installation ceremony marks a significant milestone in the district’s history, bringing to an end a protracted dispute over the chieftainship.

The event is expected to attract dignitaries, community leaders, and residents from across the district.

In the community

Nkayi man in court for alleged rape of minor

Published

1 day ago

August 15, 2025

VicFallsLive

BY NOKUTHABA DLAMINI

A 28-year-old man from Nkayi appeared before the Nkayi Magistrates’ Court, facing charges of raping his 15-year-old niece.

The prosecution alleges that the incident occurred on July 28, 2025, in a secluded bushy area. The accused is said to have sexually assaulted the minor after she refused his advances.

The matter was reported to the authorities, leading to the accused’s arrest. He has been remanded in custody pending his next court appearance.

The case has been referred to the Bulawayo Regional Court for further proceedings, with the accused set to appear on August 26.