The Zimbabwe Government will penalize individuals and companies charging prices above the prevailing official foreign exchange rate.
The Reserve Bank of Zimbabwe (RBZ) sets the official exchange rate in the economy daily.
Offending firms and individuals will be fined ZiG200 000, but if the foreign currency taken in is higher in value, then the penalty equals that foreign currency.
Furthermore, the 10 percent premium that retailers were allowed on the official exchange rates between foreign currency and the ZiG has now been abolished.
The changes were made through Statutory Instrument 81A of 2024, Exchange Control (Amendment of Schedule to Exchange Control Act) Notice, 2024, gazetted on Thursday, 09 May. Reads the Statutory Instrument:
Exchange Control (Amendment of Schedule to Exchange Control Act) Notice, 2024
THE Minister of Finance, Economic Development and Investment Promotion, in consultation with His Excellency the President, in terms of section 11(2) of the Exchange Control Act [Chapter 22:05], hereby makes the following notice: —
Title
1. This notice may be cited as the Exchange Control (Amendment of Schedule to Exchange Control Act) Notice, 2024.
Substitution of Paragraph 2(12)
2. Paragraph 2 (“Power of Reserve Bank to issue civil penalty order”) of the Schedule (“Civil Penalty Orders”) to the Exchange Control Act [Chapter 9:23] is amended by the repeal of subparagraphs (12) and (13) and the substitution of the following subparagraphs —
“(12) A natural or legal person shall be guilty of a civil infringement if he or she, being a seller of goods or services, offers such goods or services at an exchange rate above the prevailing average interbank foreign currency selling rate published by the Reserve Bank of Zimbabwe.
(13) In the event of default in complying with subparagraph (12), the civil penalty shall provide for-
(a) a combination of-
(i) a fixed penalty of two hundred thousand ZiG or an amount equivalent to the value of the foreign currency charged for the goods or services in question (whichever is the greater amount); and
(ii) a cumulative penalty over a period not exceeding ninety days of five per centum of the outstanding amount of the fixed penalty for each day (beginning on the day after the service of a civil penalty order) that the fixed penalty or any outstanding amount thereof remains unpaid by the defaulter;
(b) the suspension of the operation of the civil penalty order for a period of 48 hours from the date of its issuance to enable the alleged defaulter to show cause to the designated officer why the order should not have been issued:
Provided that-
(i) if no such cause is shown within that period the order shall be deemed to have been issued with effect from the beginning of such period;
(ii) if within that period, good cause is shown why the order should not have been issued, the designated officer shall withdraw the order and make the appropriate notation of withdrawal in the civil penalty register.
