Economic Updates - Featured - Local - Top Stories - June 15, 2021

Foreign exchange auction abusers listed

By Bridget Mabanda

Intelligence Unit and the Bank’s Exchange Control Division investigations have exposed entities which were abusing the foreign exchange auction system in accordance with the Statutory Instrument 127 of 2021 (SI 127).

The Reserve Bank of Zimbabwe has listed 18 entities which were abusing the foreign exchange auction system.

Among 18 listed entities, there is National (Pvt) Ltd, Georgia Petroleum and Mutare Mart and Exchange.

In a statement, the RBZ governor, John Panonetsa Mangudya said the Bank is appreciating community for the feedback during the engagements in understanding the essence of Statutory Instrument 127 of 2021.

He added that the SI 127 will sustain inflation and exchange rate stability for the economy to rebound.

“The bank has a duty of care to ensure that the significant progress that the economy made since the introduction of the foreign exchange auction system in June 2020 continues on an unabated positive trajectory whilst at the same time protecting consumers and fostering compliance to engender fair play in the economy,” reads the statement.

Statutory Instrument 127 of 2021 prohibit businesses from selling goods and services or quoting at an exchange rate above the ruling auction market rate setting out penalties for businesses and individuals that refuse to accept payment in the Zimbabwe dollar at the ruling auction market rate.

Mangudya said the Bank’s efforts to foster compliance in terms of SI 127 shall be limited to outlets that wantonly abuse the foreign exchange auction system, exchange rate manipulation and non-compliance with anti-money laundering rules and regulations.

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

Lafarge’s sales escalates by 23%  

Lafarge Cement Zimbabwe’s has recorded an increase in sales, this has been revealed in the…