Eighteen companies are facing penalties for misusing foreign currency drawn from the Reserve Bank of Zimbabwe’s foreign currency auction system.
The apex bank today published a list of 18 companies facing penalties over abuse of foreign currency obtained from the foreign currency auction system.
Statutory Instrument 127 of 2021 last month was promulgated last month to regulate use of US dollars from the auction system.
The regulations contained in SI-127 of 2021 seek to address businesses’ pricing of goods and services only in forex, which is not in line with the prevailing multicurrency environment; Issuing a local currency receipt for a foreign currency purchase, and use of foreign currency acquired through the central bank’s auction system.
The firms include: National Foods (Pvt) Ltd, Georgia Petroleum (Pvt) Ltd Company, Tettola Investments (Pvt) Ltd, Africa Steel (Pvt) Ltd, Westvillle Investments (Pvt) Ltd, Flicknik Enterprises (Pvt) Ltd, Duo Valley Commodity Brokers, Faircclot Investments, GlenuLas Trading, Natural Stone Export, and Nuvert Trading.
Other companies also include Phirebrook Investments, Classic Energy (T/A Omni Africa), Clorex Energy, Explochem, Mutare Mart & Exchange, Souzrce Fuels and Kimya Investments.
“After investigations by the Financial Intelligence Unit and the Bank’s Exchange Control Division, the entities listed hereunder which were abusing the foreign exchange auction system shall be dealt with in accordance with SI-127.
“Going forward and in line with the recommendations from the business community on the need to continue
to enhance stability in the economy, the Bank’s efforts to foster compliance in terms of SI-127 shall be limited to outliers that wantonly abuse the foreign exchange auction system, exchange rate manipulation and non-compliance with anti-money laundering rules and regulations,” said RBZ governor Dr John Mangudya in a statement.
“The Bank’s focus on these key areas, coupled with business’s reality check, self-discipline, self-monitoring and peer-review, will sustain inflation and
exchange rate stability that are necessary for the economy to continue to rebound.”