The Reserve Bank of Zimbabwe (RBZ) has listed companies set to be disciplined for abusing the foreign exchange auction system.
A few weeks ago, the RBZ passed the Statutory Instrument (SI) 127 in which businesses are supposed to make foreign currency transactions using the interbank rate.
“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.
“It is against these noble objectives that SI 127 was put in place to provide for penalties against errant entities that were at the forefront of abusing the foreign exchange auction system to the detriment of the stability of the economy.” RBZ said in a statement.
The RBZ listed National foods, Georgia Petroleum, Tettola investments, Africa Steel, Westville Investments, Flicknik Enterprises, Duo Valley Commodity Brokers, Faircclot Investment, GlenuLas Trading, Natural Stone Export Company, Nuvert Trading, Phirebrook Investments, Classic Energy, Clorex Energy, Explochem, Mutare Mart and Exchange, Souzrce fuels and Kimya Investments as companies found on the wrong side of the law.
“Accordingly, after investigations by the financial Intelligence Unit and the Bank’s Exchange Control Division, the entities listed hereunder which were abusing the foreign exchange rate shall be dealt with in accordance with SI 127.” The Reserve Bank said.