Zimbabwe to fine companies not using official ZiG FX rate

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In a bid to avoid curb the parallel market.

Zimbabwe will penalize individuals and companies which don’t use the prevailing official foreign-exchange rate of its new ZiG currency for transactions. The government will levy a fine of 200 000 ZiG on offending firms and individuals, Mthuli Ncube, the finance minister said in a statement published Thursday. The Treasury Chief had warned on Tuesday of looming regulations to enforce sole use of the official exchange rate in the economy, which is set daily by the Reserve Bank of Zimbabwe.

The new rule now also scraps a previous requirement for retailers to price their goods within 10% of the official exchange rate for profits. The regulation made them uncompetitive against informal traders in the fight for dollars as their goods became expensive. The ZiG, short for Zimbabwe Gold, was unveiled on April 5 and succeeded the Zimbabwean dollar, which had lost 80% of its value this year.

 

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