Over the past few years Zimbabwe has suffered from severe foreign currency shortages, and because of the continued use of the controlled exchange rate system by the government there has been an increase in foreign currency dealers. Their business flourish because they offer a very high exchange rate which is probably the actual valuation of the Zimbabwean dollar compared to other currencies.

A lot of people have lost money through dealing with these black market foreign currency traders because of the lure of the high exchange rate. Always remember if it's too good to be true, probably it is.

Recently we have had of instances where the black market dealers are requesting more personal details of the sender than they were doing before. I know it's true when you use the formal channels, like banks, Western Union and other money transfer agencies you still provide them with this information.

But these agencies are registered, in the case of UK you know they are regulated by the Financial Service Authority. In the invent of any dispute you know the agency has to adhere to certain set rules and guidelines to resolve the dispute. On their paper work it shows how they use your personal information. They have terms and conditions which you are directed to. Where as most of these black market traders, are not registered, some do not even have written policies and procedures. They end up sending you unsolicited junk mail promotions for their other business dealings.

Many people have lost their money to the black market foreign currency traders, because there is no way of tracking the dealers. Most people do not even have a clue of the physical address of the people they use to change money. Hence the dealer can just change phone numbers, which in most cases is a mobile phone number, and you lose your hard earned money.

However there is an advantage in using these black market forex dealers, in the case of Zimbabwe. Surely who would want to change their hard earned currency through the bank at those ridiculously low exchange rates? Who would want to use Home link services to send money as well because of the rate they offer. You will always look of the high exchange rate, however you just have to be careful.

Do not lose your hard earned money always use reputable forex dealers, shop around first before depositing your money and always make sure to keep your paper work until everything is sorted.

Have you had any of these stories of people losing money, have you lost money yourself? Your comments are welcome

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