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Writes Marlvin Ngiza
The Reserve Bank of Zimbabwe, through the Financial Intelligent Unit, has warned all business players that were manipulating the foreign exchange rate by engaging in illegal forward pricing strategies that the central bank was widening punitive measures for the delinquent businesses.
In a statement released, FIU said those engaged in the practice were risking prosecution, revocation of operations, and accounts freezing.
It was also added that businesses were only allowed to apply a margin of up to 10 percent above the interbank exchange rate and there was no justification for non-compliance with the legal margins.
“The Financial Intelligence Unit (FIU) has noted with grave concern that some businesses are engaging in illegal forward pricing practices thereby manipulating the foreign exchange rate.
“In terms of the law, businesses are permitted to apply a margin of up to 10% above the interbank exchange rate. There is no justification for non-compliance with the legal margins in light of the recent implementation of a market-determined interbank exchange rate system.
“With immediate effect, the FIU will be escalating and widening remedial and punitive measures against delinquent businesses by not only imposing administrative fines but also directing that culprits’ bank accounts be frozen indefinitely and referring the culprits to relevant authorities for the suspension of trading or operating licenses and liability will also be extended to directors and owners of the concerned businesses,”said FIU.
Meanwhile, RBZ Governor, Dr. John Mangudya in a state of foreign exchange liquidity in the economy press statement said that there was sufficient foreign exchange in the market to satisfy all needs and demands of the bank’s customers.
Dr. Mangudya added that the public had to abandon social media reports on Foreign Currency Accounts(FCAs) saying they were fictitious about the real liquidity standings in the country.
“The Reserve Bank of Zimbabwe wishes to advise and reassure the public that there is sufficient foreign exchange in the market to satisfy all needs and demands of banks’ customers.The foreign exchange liquidity stands at 60% in both cash and balances held with foreign corresponding banks.
“In this regard, statements allegedly made by certain banks and shared via social media, purporting that funds held in foreign currency accounts (FCAs) are not foreign exchange and that the said banks were deactivating the use of international debit or credit cards such as MasterCard should be disregarded. The statements are uncalled for as they do not represent the true state of the foreign exchange liquidity position in the economy, ” said Dr. Mangudya.
This comes amid a surge in prices of basic commodities which were reported to be perpetrated by a rise in the “black market” exchange rate.