Chronicle Editor
GOVERNMENT ministries and agencies should immediately stop showing preferences for foreign currency when charging for services as it is contrary to the current Government policy, the Treasury has said.
In a memo to heads of Government departments and agencies, secretary for Finance and Economic Development, Mr George Guvamatanga, said this was to save the local currency from further depreciating in value.
Government, through the Minister of Finance and Economic Development, Prof Mthuli Ncube, has already issued a press statement outlining measures meant to arrest further deterioration of the business environment, as well as stabilise the exchange rate.
Among the measures that were announced was the reaffirmation on the use of the local currency as legal tender.
As such, Mr Guvamatanga has said that ministries, departments and agencies are required to observe the multicurrency regime by providing options to citizens on payment for government services.
“Instances where Government ministries, departments and agencies show preference for the US$ when charging for services to the general public should stop forthwith as it is contrary to the current Government policy position,” he said in a memo sent on Friday.
“This general rule applies to all public institutions, except where explicit authority has been granted to charge exclusively in foreign currency.”
Recently there has been a wave of price increases, which has seen most basic commodities going beyond the reach of many as businesses index charges on the parallel market exchange rate. – New Ziana
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