Farirai Machivenyika

Senior Reporter

Teams from the Reserve Bank of Zimbabwe (RBZ) are already on the ground inspecting levels of compliance in the market, following the gazetting of Statutory Instrument 127 of 2021, and with those found on the wrong side face the full wrath of the law, Deputy Minister of Finance and Economic Development, Clemence Chiduwa, has said.

He said this yesterday while responding to questions from parliamentarians in the National Assembly.

Deputy Minister Chiduwa said SI 127 of 2021, gazetted under Presidential Powers (Temporary Measures) (Financial Laws Amendment) Regulations, 2021, seek to protect consumers from businesses abusing foreign currency obtained from the auction system.

He explained that there was nothing new in the provisions of the SI except to enforce compliance as authorities were relying on moral suasion prior to the promulgation.

The Deputy Minister added that the regulations were addressing policy and legal issues to deal with entities and persons obtaining forex at the auction exchange rate but peg their prices at black market rates.

“It is those who want to benefit at the expense of consumers and ordinary people that are crying foul,” he said.

According to the SI, the Reserve Bank of Zimbabwe now has powers to impose civil penalties on institutions and individuals that use foreign currency obtained from the auction system for a purpose other than that specified in the application for the money.

The central bank can impose the penalties in the event of default in complying with Exchange Control Regulations that govern use of funds obtained from the forex auction.

Those found guilty of infringing Exchange Control regulations will be slapped with a fixed penalty of the amount of $1 million or an amount equivalent to the value of the foreign currency obtained (whichever is the greater amount).

Deputy Minister Chiduwa said teams from the RBZ were already inspecting levels of compliance in the market and with those found on the wrong side of the law face the full wrath of the law. Also gazetted under Statutory Instrument 127 of 2021 is the penalisation of natural or legal persons guilty of being a seller of goods or services not authorised by law to charge for them exclusively in foreign currency.

This includes businesses and individuals that refuse to allow any buyer to tender payment for them in Zimbabwe dollars at the ruling exchange rate.