18 firms face RBZ penalty over forex abuse

BUSINESS REPORTER

The Reserve Bank of Zimbabwe (RBZ) will penalise 18 companies for abusing the foreign currency auction system, governor John Mangudya said Tuesday, as the bank moves to instill discipline in the market.

Under Statutory Instrument 127 of 2021, RBZ was given more teeth to bite those that are abusing the auction system.  Government has in the past accused errant of accessing foreign currency at the auction market at a rate of ZWL$85 but pricing at a rate of ZWL$120.

Companies to be penalised are National Foods Limited, Georgia Petroleum, Tettola Investments, Africa Steel, Westville Investments, Flicknick Enterprises, Duo Valley Commodity Brokers, Faircclot Investments, GlenuLas Trading, Natural Stone Export Company, Nuvert Trading, Phirebrook Investments, Classic Energy, Clorex Energy, Explochem, Mutare Mart & Exchange, Souzrce Fuels and Kimya Investments.

Mangudya said the entities would be dealt in accordance with SI127.

The new legal instrument gazetted under Presidential Powers  (Temporary Measures) (Financial Laws Amendment)  regulation, empowers the Reserve Bank of Zimbabwe (RBZ) to impose hefty penalties on businesses issuing local currency receipts for a foreign currency purchase, pricing of goods and services above the ruling exchange rate, pricing of goods and services only in foreign currency and using the money obtained from the auction system for other purposes than what the supporting invoices on the bid state.

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