The Wheels Are Off
11 June 2023
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By A Correspondent| The Financial Intelligence Unit (FIU) of the Reserve Bank of Zimbabwe (RBZ) has been threatening businesses with harsh penalties for not complying with its regulations.

However, economic analyst Professor Gift Mugano has warned that the FIU has no capacity to police more than 6 million people and small and medium-sized enterprises (SMEs) in the informal sector.

“It is understandable that the FIU must say something,” Mugano said in a tweet.

“But these statements will not help the situation. The wheels are off!”

Mugano’s comments come at a time when the Zimbabwean economy is in a state of crisis.

Inflation is at an all-time high, and the value of the Zimbabwean dollar has plummeted.

This has made it difficult for businesses to operate.

The FIU’s threats have only added to the uncertainty and anxiety in the business community.

Many businesses are now reluctant to make any investments or hire new employees, for fear of being penalized by the FIU.

The FIU’s threats have had a chilling effect on the Zimbabwean economy.