Zimbabwe combs system for foreign currency cheats

Zimbabwe’s Reserve Bank has hired audit firms to investigate the country’s
banks for allegedly abusing the liberalised foreign currency trading system.

The firms ­ Camelsa Chartered Accountants, BDO Kudenga & Company, PwC,
Deloitte, KPMG and BCA Consulting ­ have begun investigations to verify all
foreign currency transactions since the beginning of a new policy last month
governing currency trading.

Investigations into the new system were launched following reports that
authorised dealers were not reporting the actual exchange rate at which
transactions were conducted. Some were also splitting transactions, thereby
fuelling parallel market dealings.

Similar audits last week revealed foreign currency trading irregularities at
Genesis Investment Bank.

The six firms will also inspect all corporate, embassies, NGOs, international
organisations and individual foreign currency accounts transactions from 2 May
to certify they were in full compliance with exchange control parameters,
government newspaper The Herald reported.

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