The Effects of Informal Forex Trading in the Economy. A Case Study of Harare · Electronic Theses and Dissertations

Author: Makambwa, Blessing
Title: The Effects of Informal Forex Trading in the Economy. A Case Study of Harare
Abstract: This study was carried out to establish the effects of informal forex trading in the economy. A
case study of Harare. The objective of this study was to identify the causes of informal forex
trading, to examine the effects of informal forex trading and to explore ways for dealing with
informal forex trading. Descriptive survey research design was employed by the research and
the sample size used was 385 respondents in which random sampling were utilized in selecting
the sample, people affected by the activities of informal forex trading in Harare created the
sample. The data was presented in form of tables, pie charts and graphs and it was analysed
using the SPSS software It was established that foreign currency shortage, means of survival,
economic slide, lack of employment and rise of inflation were the causes of informal forex
trading, losing power of the local currency, high price of goods and services, lack of economic
development, employment creation and rise inflation were the effects of informal forex trading.
Based on the research findings, it was recommended, government to create employment for
people so as to end informal forex trading through employment creation, blacklisting illegal
forex dealers so as to end informal forex trading by instilling fear in people, identifying and
freezing accounts by banks of informal forex traders so as to end informal forex trading and
education and training by the government to people on the importance of formal forex trading
to the economy so as to end informal forex trading.
Date: 2023
Publisher: BUSE
Keywords: informal forex trading; Economy
Supervisor: N/A

Item sets: Department of Accountancy

Media: Blessing Makambwa.pdf