Importers will soon be required to declare the legal source of their foreign currency under legislation being drafted, as Government takes measures to kill the black market. Those who fail to do so will have their goods forfeited to the State.

The move is among a raft of measures to push foreign currency trading into the legal interbank market run through banks and bureaux de change.

The plan was outlined by Finance and Economic Development Deputy Minister Clemence Chiduwa in a post-Budget media interface he addressed yesterday in the company of Minister Mthuli Ncube and permanent secretary Mr George Guvamatanga.

Deputy Minister Chiduwa was responding to questions on why the Government and law enforcement agents appeared to be turning a blind eye to illegal foreign currency traders operating openly in all major cities and towns.

Some business sectors want further consultation before the regulations are promulgated.

The Confederation of Zimbabwe Retailers Association and the Zimbabwe Cross Border Traders Association, while seeing positive outcomes to the move, are worried there could be shortages of some goods since holders of foreign currency could just hang onto their money.

They believe extra efforts were needed to restore confidence in the interbank market before full implementation of such regulations.

Chiduwa said it was apparent that some importers were responsible for mopping up a lot of foreign currency on the black market, thus keeping illegal dealers in business.

Confederation of Zimbabwe Retailers Association president Mr Denford Mutashu said the biggest impediment to the success of the regulations was that a lot of business was being conducted outside the formal market.State media