THE Reserve Bank of Zimbabwe (RBZ) has dispatched a
monitoring team to knock down the last bastions of unscrupulous businesses that
are still transacting in foreign currency.
Last month, the Government repealed the use of the basket of multi-currencies that had been
in place since 2009 and said all local transactions are now being done in the
local dollar.
However, some businesses have remained adamant and are
still openly transacting in foreign currency in defiance of the law.
In an interview on Friday, Reserve Bank of Zimbabwe
Governor, Dr John Mangudya said there was a need for businesses to comply with
the Statutory Instrument 142/2019, which stipulates the Zimbabwe dollar as the
sole currency for legal tender purposes further stating that failure to abide
with the new law was tantamount to sabotage.
“Our request is for them (businesses) to respect consumers
by complying with the country’s laws. We need to cherish discipline for the
national good. Our teams are now on the ground to foster compliance by all
businesses,” said Dr Mangudya.
The move by the Central Bank comes after police issued a
statement warning retailers to desist from charging their goods and services in
foreign currency.
As of 24 June, the Government banned the use of the British
pound, United States dollar, South African rand, Botswana pula and any other
foreign currency as a legal tender.
The Zimbabwean dollar (bond notes, coins and RTGS) was made
the sole legal tender and those with foreign currency could change the money
before using it for local transactions.
However, a survey by Sunday News in some shops in Bulawayo
discovered that some businesses are still clandestinely defying the order.
It was also observed that some fuel service stations are
still charging in foreign currency with some openly displaying US dollar
prices.
Shops in Matabeleland South Province in rural areas
bordering the country with neighbouring countries of South Africa and Botswana
are said to be still transacting using foreign currency especially the South
African rand.
Contacted for a comment Plumtree-Mangwe Business
Association chairman Mr Golden Sibanda confirmed communities living along the
border were still transacting in foreign
currency.
“In essence most rural people in Matabeleland use foreign
currency especially the rand when selling their livestock. It’s difficult to
convince them to accept the bond and as such because most people are based in
South Africa, so you find that other shops have no option but to transact in
the rand. As business we have accepted the new currency reforms but for some
it’s proving to be difficult,” said Mr Sibanda.
He said the use of local currency was also proving to be a
challenge as most elderly people in the rural areas were not conversant with
modern electronic payment methods.
Confederation of Zimbabwe Retailers president Mr Denford
Mutashu said the association was not in a position to defend any business found
liable to contravening the new policy.
“Anyone found selling goods in forex, which is outlawed, is
breaking the Exchange Control Act and laws of the country. As you may have
heard from the President, Government will soon crack the whip as an
association, we will not stand in the way,” he said.
He, however, said there was a need to curb the existing
price distortions across the value chain.
“The pricing regime in the country has got to be
investigated right through the value chain in view of the unjustified price
increases obtaining across general economy,” said Mr Mutashu.
Meanwhile, the fruits of the banning of the use of foreign
currency have continued to manifest with prices either remaining stable or
going down in the past two weeks.
Prices of some basic commodities such as bread, cooking
oil, mealie-meal and Mazoe Orange Crsu, have slightly gone down this past week.
A survey in major shops in Bulawayo revealed that a bread
now costs $4.20 from $5, cooking oil went down from $30 to $20 while Mazoe has
gone down from $23 to $16 in most shops.
Consumer Council of Zimbabwe executive director Ms Rosemary
Siyachitema said her oragnsiation was expecting prices of more goods to go
down.
“We are happy that
there are changes being seen in formal shops but we expect prices to go down
even further than that and we want to see reduction of all prices not certain
prices. Retailers were saying they are buying foreign currency from the black
market at high rates but the black market is almost most dead so the prices
must fall,” she said. Sunday Mail
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