The government has moved to block businesses from selling goods at an exchange rate above the one published by the Reserve Bank of Zimbabwe.
According to Exchange Control (Amendment of Schedule to Exchange Control Act) Notice, 2024, which was published on the 9th of May, anyone who violates this new development will be guilty of civil infringement and will face severe punishment including ZiG200 000.
The last Monetary Policy from former Reserve Bank Governor John Mangudya allowed businesses to use an exchange rate that was 10% above the prevailing rate.
However, speaking in the National Assembly, Deputy Minister of Finance, Economic Development and Investment Promotion Kudakwashe Mnangagwa said that the condition is no longer fit for purpose.
‘’Thank you. Mr. Speaker, I was describing the main objectives of the amendments we seek in this S.I. which are amendments of the Schedule of the Exchange Control Act, which is firstly, to repeal the provision within the Schedule that allowed sellers of goods and services to sell at a 10% margin above the exchange rate.
‘’This amendment will also provide that sellers of goods and services will be guilty of a civil infringement if the offer of such goods and services are above the exchange rate as published by the Reserve Bank.
‘’We also seek, Mr. Speaker, to put a fixed penalty of ZiG200 thousand for offenders in the Schedule.
‘’This penalty Mr. Speaker, is meant to be a deterrent to those businesses that offer goods and services above the stipulated and market-determined exchange rate.
‘’This 10% margin, while was fit for purpose before the Monetary Policy is no longer fit for purpose. Mr. Speaker, in that regard, I move that this motion be adopted,’’ he said.
