Harare, Zimbabwe – Kenias Mutsenha had long ceased using his Zimbabwean local currency bank account, abandoning it for one trading in US dollars, as many in the economically volatile country prefer dealing with more stable foreign currencies.

But when he took on consultancy work in Harare this year and a client needed to pay him in Zimbabwe Gold, or ZiG, currency, he returned to the bank to reopen his account. There, the teller asked for a reactivation fee in ZiG notes. Again, Mutsenha only had US dollars, which the bank would not accept or exchange.

“I had to find cash somewhere,” Mutsenha, 46, said, realising there was only one place he could go: “The streets”.

While most Zimbabweans prefer trading in US dollars – to avoid the pitfalls of major currency fluctuations – government institutions use local currency. At the same time, banks don’t have enough ZiG notes, as the Central Bank – wanting Zimbabwe to move towards a cashless society – has not put enough cash in circulation, experts say.

As a result, people flock to Harare’s central business district (CBD), where there is a thriving black market foreign exchange trading operation.

Since the launch of the ZiG last year, the government has been clamping down on informal currency dealers. But this has only created a situation where the suppliers find new avenues to explore – as Mutsenha discovered that day.

Finding local currency on the street was a nightmare, he said. “I wandered in the CBD until one illegal forex dealer [who said he had no cash] directed me to a certain street. I was told the person [exchanging money] is disabled on a wheelchair.”

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On a bustling street corner, Mutsenha found Leonard Mumba*, who used to sell mobile phone airtime at a local bus terminus but now deals in something far more lucrative, secretive, and risky.

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