Service providers heeding to Government’s dual pricing call

Service providers heeding to Government’s dual pricing call

Service providers heeding to Government’s dual pricing call

Kudzai Furusa

Several service providers including supermarkets, wholesales and local authorities were heeding to Government’s call for dual pricing as stipulated by Statutory Instrument 85 of 2020 of the Exchange control announced last week.

First Secretary of the Party and President His Excellency President  Emmerson Mnangagwa last week gazetted the regulations in SI 85 of 2020, which may be cited as Exchange Control (exclusive Use of Zimbabwe Dollar for Domestic Transactions) Regulations and converts a Reserve Bank of Zimbabwe policy set at the start of the auctions to a legal requirement.

A survey conducted in Harare by the ZANU PF Information Department and Publicity showed that supermarkets like Spar and Ok Mart were pricing their commodities using the auction led rate of rate of ZW$73.95 as to US$1.

The Harare City Council is also issued a statement by advising ratepayers that “council is now empowered to collect rates and charges in United States Dollar as directed to SI 85 OF 2020.”

HCC assured rate payers that it would adhere to the dictates of the Bank Promotion Use Act with regards to the deposited foreign currency.

This comes following Government’s call for everyone providing goods or services in Zimbabwe to start quoting their prices in both currencies, but using the standard exchange rate set each week as the weighted average in the foreign currency auctions.

The development is expected to lead to price discovery and stabilisation at the same time killing the parallel market.

Offenders face face a category 1 civil penalty, of $20 000, “or if the offence is a continuing one a daily penalty of $4 800, although in this second case the penalty can be avoided if the retailer obeys the law within 24 hours.”

Innocent Mapurisa

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