US$ remains legal tender: Mangudya

THE United States dollar remains legal tender in the country and the newly gazetted regulations requiring businesses accessing foreign currency through the Reserve Bank of Zimbabwe (RBZ) foreign exchange auction system to use the official exchange rate in their pricing mechanisms are meant to curtail market indiscipline.

Statutory Instrument 127 of 2021, gazetted last week, imposes penalties on businesses accessing foreign exchange on the RBZ platform and then proceed to peg their prices using parallel market rates.

Responding to questions on the statutory instrument yesterday, RBZ Governor Dr John Mangudya said the new regulations were not designed to harm businesses but to enforce market discipline and eliminate arbitrage.

He said businesses pegging their prices using parallel exchange rates after accessing forex from the auction system were operating unfairly and their actions were bad for the economy and consumers.

Promulgation of the regulations saw some large scale retailers yesterday refusing to accept foreign currency at the tills, asking customers to first exchange their forex at bureau de-changes in-store.

However, Dr Mangudya said the use of foreign currency for the payment of goods and services was still allowed.

“The purpose of Statutory Instrument 127 is to ensure that those obtaining foreign exchange from the auction system use the market exchange rate which is within the auction weighted exchange rate or the auction bid range,” he said.- Sundaymail

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