‘No sacred cows in blitz against exchange rate violators’

THE Zanu-PF Government will not hesitate to arrest and discipline through the law, party members in business who are either refusing to accept the Zimbabwe Gold (ZiG) currency or use inflated exchange rates, the ruling party’s national political commissar, Cde Munyaradzi Machacha, has said.

Government introduced the ZiG in April to replace the Zimbabwe dollar, which had suffered loss of value due to currency volatility and inflation.

Since its introduction, the ZiG has remained stable against the US dollar, contributing to price stability and increasing the buying power for consumers amid widespread endorsement by different economic stakeholders.

However, some pockets of resistance still remain with consumers raising concern over unscrupulous businesses that either inflate foreign currency prices for goods and services or use black market exchange rates of up to US$1:18 ZiG yet the official exchange rate is hovering at below ZiG13,5 against the USD.

In some cases, some of the traders will pretend their swipe machines have no network to facilitate local currency sales in order to justify trading in forex only.

Most fast-food outlets and those in the informal sector are openly refusing the ZiG.

Speaking in Bulawayo on Saturday, Cde Machacha said there are no sacred cows in the application of the law and urged party officials to lead by example.

“Zanu-PF businessmen or women, should lead by example’. If these businesspeople are truly Zanu-PF, they should work for the success of ZiG and Government policies because a stable currency will benefit all of us,” he said in an interview.

Cde Machacha said the use of the local currency will benefit both the consumers and businesses as it will lead to the growth of the economy.

“We therefore encourage discipline and ethical conduct from everyone including Zanu-PF members. Anyone working against our local currency is certainly fighting what the party and leadership of the party are trying to build and must be punished like anyone else,” said Cde Machacha.

He said those businesses found using black market exchange rates or refusing ZiG must all be arrested.

Cde Machacha’s sentiments come at a time when the Reserve Bank of Zimbabwe’s Financial Intelligence Unit (FIU) has established a hotline and WhatsApp number to enable members of the public to report businesses rejecting the local currency or using the black market exchange rates.

“Please report traders who are refusing to accept ZiG or are exceeding the official ZiG/US$ exchange rate to the Financial Intelligence Unit on Hotline and WhatsApp numbers: 0714039897,” said the FIU in statement.

The FIU has since January frozen bank accounts for 522 business operators and individuals found to be violating the exchange regulations while 140 entities and individuals have been heavily fined as part of an ongoing clampdown on those who sabotage the economy.

Of late the FIU has been focusing on those who move large sums of money using multiple bank cards while accounts that are linked to bank cards that are being repeatedly used to make purchases in shops in patterns that are inconsistent with normal shopping behaviour are being flagged.

Often these cards are used by middlemen, who accost customers in and outside shops asking them to use their ZiG cards to make purchases and then they are given forex equivalent.

The FIU surveillance also targets manufacturers and suppliers that are refusing the ZiG, which has seen compliance levels increasing, especially in the formal sector.

Government last month promulgated Statutory Instrument 81A of 2024 to enable it to punish those found flouting the exchange rate.

Under these regulations, individuals and businesses found charging goods beyond the RBZ gazetted exchange rate will be fined ZiG 200 000. — @themkust