Reserve Bank names companies abusing foreign exchange auction system
Bongani Ndlovu, 15 June 2021
THE Reserve Bank of Zimbabwe has named 18 companies that have been abusing the foreign exchange auction system.
The RBZ released a statement and said the companies that were found out by the Financial Intelligence unit will be fined.
The companies include National Foods (Pvt) Ltd, Georgia Petroleum (Pvt) Ltd, Tettola Investments (Pvt) Ltd, Africa Steel (Pvt) Ltd, Westville Investments (Pvt) Ltd (T/A Omni Africa), Flicknik Enterprises (Pvt) Ltd, Duo Valley Commodity Brokers, Faircclot Investments, GlenuLas Trading, Natural Stone Export Company, Nuvert Trading, Phirebrook Investments, Classic Energy, Clorex Energy, Explochem, Mutare Mart & Exchange, Souzcre Fuels and Kimya Investments.
According to SI 127 of 2021, businesses that access foreign currency on the RBZ Foreign Exchange Auction System (introduced last year) and then proceed to peg prices using parallel market rates may face a maximum fine of ZW$50,000. Any business that puts a premium on goods and services in local currency to induce consumers to pay using foreign currency will face a penalty of ZW$50,000.
The RBZ said that these companies shall be dealt with under SI 127.
