Zimbabwe’s central bank has given businesses in the country two weeks to become fully compliant with new foreign currency regulations announced last week.
The new regulations, contained in Statutory Instrument 127 of 2021, seek to ensure effective usage of foreign currency obtained through the central bank’s foreign currency auction system.
Said the Reserve Bank of Zimbabwe (RBZ):
“Businesses have been given 2 weeks to regularise their systems so that they can comply with the SI on the receipting of goods & services in either foreign currency or local currency.
“The S.I is an essential means of enforcing compliance which is necessary for continued stability.”
Last Thursday, the authorities promulgated Statutory Instrument 127 of 2021 that empowers the apex bank to impose penalties on businesses and persons that actively break regulations in the Foreign Exchange Act (22:05) and the Banking and Use Promotion Act (24:24).
Some of these regulations relate to pricing goods and services only in forex 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.
In terms of the new regulations, companies face a fine of up to ZWL$1 million (approximately US$11 800) or an amount equivalent to the value of the foreign currency obtained will be imposed for misuse of foreign currency obtained from the Reserve Bank of Zimbabwe’s foreign currency auction system.
And both businesses and individuals will also be liable for a penalty of ZWL$50 000 if they refuse to accept
payment in local currency at the prevailing official exchange rate, or if they charge above the official rate.
“The use of parallel exchange rates of above 100, for example, on funds obtained from the auction at ZWL$85 to US$1 is not good for the economy and consumers. It is these anomalies or arbitrage opportunities that the S.I is designed to deal with,” said the RBZ.