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Business Warned Against Using Black Market Rates

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Business has been warned to stop using black market rates, behave and stopre rent seeking behavior.Speaking exclusively to TechnoMag, Reserve Bank of Zimbabwe (RBZ) Governor Dr. John Panonetsa Mangudya said the arrest of company directors for contravening the Exchange Control Act last month was never a “key result area” but a way of bringing order on the market.

Dr. Mangudya explained Statutory Instrument 127 of 2021 which prohibits trade in goods and services at an exchange rate above the foreign currency auction system rate.

Several company bosses were either caged or quizzed by the police and Financial Intelligence Unit (FIU) of the central bank for allegedly sourcing foreign currency from the black market or pricing their goods at parallel market rates in violation of the Exchange Control Act.

According to a newsletter published by the Association for Business in Zimbabwe, Mangudya said the blitz was meant to bring order on the market.

“The purpose of doing that exercise was just to tell businesses that they should behave,” the RBZ chief said.

“If they were behaving, there is no one who was ever going to arrest them. You mean that if someone comes up and advertises that US$1 is equal to $200, you want the government to just keep quiet? That’s bad behaviour and it’s not good for anyone, even the companies themselves.”

“All we are saying is that arresting people is never a key result area. No, it’s a default function in trying to bring other people to behave themselves.”

“Those arrests were trying to put the business to order because we all agreed that it’s not good for anyone, so why should someone do it when it’s not good for anyone? The Bible says ‘thou shall not steal’ and if you steal, you are going to be punished. Why should we arrest people who are behaving themselves?” he said.

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