Pharmacies begin to toe the line

Sunday Mail Reporter

PHARMACIES have begun complying with exchange control regulations by indexing prices to the official exchange rate, a market survey by the Reserve Bank of Zimbabwe (RBZ)’s Financial Intelligence Unit (FIU) has shown.

This follows a recent blitz by the FIU targeting pharmacies that were engaging in forward pricing, a practice believed to have been fuelling exchange rate volatility.

Earlier this month, Treasury red-flagged 17 pharmacies that were using parallel market exchange rates and threatened to suspend their operating licences.

FIU director-general Mr Oliver Chiperesa said: “Yes, we are seeing ever-increasing compliance by most formal businesses.

“Most pharmacies have also started to comply by using the official rate and in line with Government policy and the law.

“Our teams are, however, out in full force throughout the country to enforce compliance across the board.”

Some businesses, he said, took long to align their prices to the official exchange rate in anticipation of the Zimbabwe dollar losing further ground on the market.

“But they are beginning to realise that the stability we have is long-term,” he added.

Seventeen pharmacies risked having their operating licences cancelled for selling drugs at the exchange rate of US$1: $8 500-$11 000.

The Ministry of Finance and Economic Development said Booties Pharmacy (Gweru) and Greenwood Pharmacy (Kwekwe) were only transacting in US dollars.

Blessed Pharmacy (Chegutu); Pineal Pharmacy and Leecare Pharmacy (Kadoma); Siegmed Pharmacy (Gweru); Mediplus Pharmacy and Kaizen Pharmacy (Rusape); and Grey Pharmacy and Manica Pharmacy (Mutare) were indexing their prices using an exchange rate of US$1:$10 000.

Global Pharmacy (Kadoma); Lancaster Pharmacy and Murapi Pharmacy (Mutare); Necta Care Pharmacy (Mutare); Apex Pharmacy (Gweru); Greenview Pharmacy (Rusape); and Central Pharmacy (Mutare) were also red-flagged for alleged exchange control violations.