SI gazetted to punish shops charging above bank rate

The Zimbabwean government has published a Statutory Instrument (SI) highlighting that the setting of prices above the official exchange rate will now attract a civil penalty of ZiG 200,000 or an amount equivalent to goods sold.

Previously, a supermarket could set prices at up to 10% above the official exchange rate.

Reserve Bank of Zimbabwe Governor John Mushayavhanu recently issued a stern warning to supermarkets found using exchange rates higher than the official rate, threatening to revoke their shop licences.

This move comes amidst reports that some supermarkets utilizing rates exceeding the official ZiG rate of 13.5 to US$1.

In a recent interview with a local radio station, according to News Day, Mushayavhanu emphasized the importance of adhering to the official exchange rate, stating that those found violating it would face severe consequences.

“You should report on all supermarkets that are not using the ZiG13.5 rate, but using a higher rate. We are not going to tolerate that. They are going to get their licences terminated,” Mushayavanhu asserted.

According to Mushayavhanu, maintaining stability in the economy and ensuring the strength of the ZiG currency relies on the adherence to the official exchange rate.

He urged citizens to hold onto their ZiG and cautioned against engaging with individuals offering higher exchange rates.

Despite the official rate set at ZiG13.5 to US$1, the ZiG currency has been trading at between ZiG17 and ZiG22 for US$1 on the parallel market.

The government has been implementing various measures to curb inflation and stabilize the exchange rate, including crackdowns on illegal foreign currency dealers.

This has allegedly claimed the scalp of senior ZANU PF official Chris Mutsvangwa’s son Neville.

Mutsvangwa’s son was arrested yesterday at his home in Harare for allegedly dealing in foreign currency.

Zwnews