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#MondayBlues: The RBZ  Statutory Instrument 127, Will Drive Selective Application Of  Law



The recently  promulgated    Statutory Instrument 127 of 2021 is  not   only an  ill thought  statute  but weak and dangerous financial   measure  which  is  meant  to  be  selectively applied and  disenfranchise other  business players  in Zimbabwe.

The past  laws  put  in place and this latest statute has failed to make sure its  applied fully  across the board with  fuel traders  like Zuva  service station  selling their  products  strictly in   USD  before  getting  a clause for exemption.

This is bad  at law  and discourages  other players to operate competitively

Statutory Instrument 127 of 2021 statute demands that

A natural or legal person shall be guilty of a civil infringement if he or she, being a seller of goods or services not authorised by law to charge for them exclusively in foreign currency, refuses to allow any buyer thereof to tender payment for them in
Zimbabwe dollars at the ruling exchange rate.

While this statute reads very well  on paper,  it  poses the danger of retuning  to the old days where some selected government and state  linked enterprises were not previously  fined or  demanded to  do the same.

The statute makes it illegal  for  any enterprise to charge  in USD without accepting any  other currency at the prevailing low bank rate, stating  that this causes  arbitrage for those getting the forex from the bank rates.

However the same statute was violated  by the selected.The fact is if you were buying something for one dollar, the equivalent in bond Zimbabwean dollars was pegged at 120 RTGS so as to safeguard the depreciating Zimdollar from shortchanging the retailer but now forcing the retailer to be shortchanged will trigger inflation.


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