Zimbabwe Bans Popular Mobile Money Services From Paying out Fiat Cash

Zimbabwe is once again showing the need to take away from politicians the power to control normal people’s money. The government there is now trying to cope with the results of mismanaging the economy by preventing citizens from using their fiat currency as they see fit.

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Zimbabwe Bans Mobile Cash Transactions

The Reserve Bank of Zimbabwe (RBZ) has issued a directive earlier this week ordering all mobile money services to no longer pay out fiat cash to their clients in the country. This was done because, allegedly, some mobile money agents were engaging in “illegal activities” which include the buying and selling of currency at higher rates than the RBZ-approved exchange rates.

The cession of these services can have a severe effect on the economic activity in the country as so many people in Zimbabwe depend on them. The leading company in the market, Ecocash, is reported to have 6.7…