Government Threatens Heavy Fines For Unjust Price Hikes
The government has announced that it will impose strict penalties on businesses engaging in unfair practices such as profiteering, manipulating the ZiG currency, and other forms of unfair trade practices.
This declaration comes amid reports of some shops and manufacturers using the unofficial exchange rate in their operations, with others deliberately resisting the use of the ZiG in preference for the US dollar.
Businesses have been citing malfunctioning swipe machines and mobile network breakdowns as justification for their actions.
During a post-Cabinet media briefing held in Harare on Tuesday, the Minister of Information, Publicity, and Broadcasting Services, Jenfan Muswere said:
Penalties are being enforced against all perpetrators of unjust price hikes, manipulation of the ZiG currency, smuggling, and all forms of unfair trade practices.
The Government is going to review the fines from a minimum of US$200 Level 5 to a maximum of US$5 000 Level 14 or the ZiG equivalent for the various offences.
Licences will be rationalised and consolidated to be obtained in one office as a measure to enhance efficiency.
Muswere also said the Reserve Bank of Zimbabwe (RBZ) will take measures to promote the uptake of plastic money. He said:
In order to promote the uptake of plastic money, the Reserve Bank of Zimbabwe will strengthen the mandatory licensing requirements for all business operators to have a bank account and Point of Sale (POS) machine under the Shop and Shop Licensing Act, and deploy inspectors to curb misdemeanours that militate against price stability and availability of basic commodities.
The Government of Zimbabwe, going forward, will increase border patrols, increase the number of inspectors and implement a Whole-of-Government Approach to deal with the menace at border posts.
A spokesperson for the Ministry of Finance, Economic Development and lnvestment Promotion told Bloomberg that the Minister (Mthuli Ncube) may make an announcement next week, without providing a specific date.
Zimbabwe is trying to shake off its heavy dependence on the US dollar, which has been the dominant currency since 2009.
The greenback now accounts for about 70% of all economic transactions in the economy, according to central bank data.
At the April launch of the gold-backed ZiG currency, US dollars were used in 85% of transactions.
President Emmerson Mnangagwa recently hinted at the possible adoption of the ZiG as the sole currency as early as 2026, ahead of an initial 2030 deadline.
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