Chinese firm named in exchange rate manipulation scam
By Farayi Machamire
The Reserve Bank of Zimbabwe’s Financial Intelligence Unit (FIU) has frozen a bank account belonging to a Chinese company after it was identified in a network of foreign currency dealers manipulating the exchange rate.
China Nianching has been flagged for committing illegal activities of foreign exchange rate manipulation, actions which have exerted pressure on the exchange rate in the last few weeks, the central bank said.
This comes as street rates on Thursday breached the 25 mark.
“The Bank (RBZ) escalated the matter to the Financial Intelligence Unit for investigation and the FIU has so far identified one entity (China Nanchang), which has used its bank account to inject millions of dollars into the parallel market in the last few days,” central bank governor John Mangudya said in a statement.
The malpractice comes as money supply has remained under control for the past five months.
“The FIU has ordered the freezing of the identified account pending further analysis and is undertaking on-going surveillance to identify more culprits involved in the parallel market transactions particularly on the Ecocash platform,” Mangudya said, adding:
“The Bank remains focused on its mandate to ensure market stability. To this end the Bank will work closely with the FIU to identify and take appropriate action in terms of the law against any culprits involved in illicit foreign currency activities and manipulation of the foreign exchange rates.” Zim Morning Post