Staff Reporter
Government has announced a crackdown on businesses that are manipulating exchange rates by using black market rates, threatening the stability of the Zimbabwe Gold (ZiG) currency.
This follows reports of widespread dual pricing systems, where businesses quote higher prices in Zimbabwean dollars, while offering lower prices for foreign currency transactions, undermining the official interbank exchange rate.
In a press statement yesterday, Permanent Secretary in the Ministry of Finance, Economic Planning and Investment Promotion Secretary, George Guvamatanga emphasised that Government would not tolerate practices that undermine the economy and destabilise the local currency.
“We are closely monitoring businesses that are using black market rates instead of the official exchange rate. This manipulation creates instability in the market and threatens the progress we have made in stabilising the local currency. We will introduce measures to enforce compliance and restore confidence in the Zimbabwe Gold currency,” Guvamatanga added.
Guvamatanga further highlighted that the ZiG currency, backed by gold, is a crucial element in Zimbabwe’s economic reforms, and any attempts to sidestep the official exchange rate would be met with firm action.
“The Treasury will not allow businesses to undermine the stability of our currency. The dual pricing system is illegal, and we are ready to enforce regulations that ensure that businesses abide by the law,” he added.
Guvamatanga also reassured the public that Government was committed to stabilising the currency and protecting consumers.
“We are working to eliminate the gaps that are creating arbitrage opportunities in the exchange market. Our goal is to promote wider use of the local currency while ensuring that businesses operate within the law,” he said.
Economists have weighed in on the Government’s efforts, with some calling for further action to address the root causes of dual pricing.
Dr Tinashe Mhango, a leading economist, noted that foreign currency injections would be crucial to maintaining the stability of the local currency.
“There is a need for consistent foreign currency inflows to prevent supply shocks as the country continues to de-dollarize. If businesses see more value in using black market rates, the Government will need to take more robust action to make the official interbank rate more attractive,” Mhango said.
Meanwhile, Government’s move is expected to bring the much-needed stability to the financial markets and reinforce efforts to build confidence in the ZiG currency as Zimbabwe moves towards full economic recovery.
