The Reserve Bank of Zimbabwe’s (RBZ) decision to allow the National Railways of Zimbabwe (NRZ) to charge in foreign currency has been criticised by captains of industry.
Confederation of Zimbabwe Industries vice-president Joseph Gunda asserted that it was unfair to allow NRZ to charge in foreign currency when other companies are obliged to trade in Zimbabwe dollars. He said:
The challenge we have is that, if NRZ is allowed to charge in foreign currency, it means we have to get the foreign currency ourselves.
It seems there is now a contradiction here, so are we now saying companies are trading in foreign currency?
… If you allow NRZ to charge in foreign currency we might as well allow everybody because it compromises others.
It means the industry is being squeezed because with the foreign currency we get through the interbank market to buy raw material, we are being forced to pay NRZ.
On December 31, 2019, the RBZ gave consented to NRZ’s appeal to be allowed to charge in foreign currency for goods exported under the Cost, Insurance and Freight (CIF) conditions.
The parastatal argued that this will enable it to repair its equipment and infrastructure.