The authorities are doubling down on ensuring market
discipline. Government released substantial amounts of money to contractors and
service providers in December after the value-for-money audits that were meant
to ensure fair pricing. It is believed some companies used the funds to mop up
US dollars on the black market. FIU director-general Mr Oliver Chiperesa said
the unit had tightened the screws to ensure market discipline.
“So far, we have identified six or so (contractors) that we
have taken action against, including referring to the Ministry (of Finance and
Economic Development) for blacklisting. We expect the stability to continue. I
think Government suppliers are no longer really getting involved on the
parallel market because they are aware of the consequences,” he said.
“It’s only a few that are still doing it and we have taken
stern action against those by freezing their accounts and referring them to the
ministry. So, following the action taken by the ministry last year, we continue
to refer more companies periodically, as and when we find them.”
Last year, Government blacklisted 19 suppliers and
contractors over similar malpractices. Some wholesalers, Mr Chiperesa said,
were charging ridiculously high prices when selling in local currency, a move
that was tantamount to devaluing the Zimbabwe dollar.
“We are not confining ourselves to the parallel market
drivers only, but also wholesalers who are overcharging. So far, in the last
two weeks, we have frozen the accounts of five major retail and wholesale shops
pending further investigations. We are continuing with our work. Our teams are
out there identifying more companies and entities that are doing the same.”
Some companies that are mopping up US dollars are
understood to be also benefitting from the RBZ foreign currency auction market.
“There is really no excuse for the companies to be using
parallel market rates at all at this stage with the near convergence that we
have enjoyed over the last few months between the parallel market and official
rates. It’s just greediness that is driving some of these companies to do
that,” he said.
Mr Chiperesa said there has been relative stability in the
market owing to a combination of sound policies and the enforcement of market
discipline.
“Parallel market rates went up somewhat at the end of December,
but, as the FIU, we have since intensified the scrutiny of accounts that may be
involved in fuelling the parallel market and companies that supply goods and
services to the Government. However, we also have been concerned about
retailers and wholesalers who use forward pricing and exchange rates that are
above the willing buyer, willing seller rate,” he said.
Economist and RBZ Monetary Policy Committee member Mr
Persistence Gwanyanya said monetary authorities will continue to be vigilant.
“As RBZ implements measures to reinforce stability, it
should maintain a watchful eye on the market. This is necessary because, if
left uncontrolled, the behaviour of some market players can spin the markets
out of control. Given the structure of our economy, it is easy for some few
powerful players to destabilise the market through participation in the black
market.”
Arbitrage activities, he said, have the capacity to weigh
down all efforts by RBZ and Treasury to stabilise the economy. Sunday Mail
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