BULAWAYO – The Reserve Bank of Zimbabwe on Friday threatened “punitive measures” against businesses accused of “illegal forward pricing practices thereby manipulating the foreign exchange rate.”
“In terms of the law, businesses are permitted to apply a margin of up to 10 percent above the interbank exchange rate,” the central bank’s Financial Intelligence Unit said in a statement.
“There is no justification for non-compliance with the legal margins in light of the recent implementation of a market determined interbank exchange rate system.”
The Zimbabwe dollar crashed this week when it lost value by nearly 50 percent, sending prices of goods through the ceiling.
The Consumer Council of Zimbabwe said this week that a family of six now requires Z$1 million a month to survive, up from Z$611,275 in April – but salaries remain stagnant.
Government workers have threatened strikes if their salaries are not urgently reviewed, presenting a threat of a winter of discontent for President Emmerson Mnangagwa who is seeking re-election in general elections on August 23.
The central bank is blaming businesses for fuelling the currency instability, and is threatening drastic actions including freezing accounts and prosecuting company directors.
“The forward pricing and non-compliance with legal limits is being done at the detriment of the consumers who bear the brunt of the resultant unjustified pricing of goods and services,” the bank said.
“With immediate effect, the FIU will be escalating and widening remedial and punitive measures against delinquent businesses by not only imposing administrative fines but also directing that the culprits’ bank accounts be frozen indefinitely and referring the culprits to relevant authorities for the suspension and revocation of trading or operating licences and prosecution. Liability will also be extended to directors and owners of the concerned businesses.”
