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HomeBusinessRBZ Warns Errant Govt Suppliers In Illegal Forex Deals

RBZ Warns Errant Govt Suppliers In Illegal Forex Deals

Emirates

The Reserve Bank of Zimbabwe (RBZ) has cautioned suppliers of goods and services to government against participating in parallel foreign currency market amid resurgent exchange rate movements devaluing the local currency.

The parallel market rates have been steadily increasing since the beginning of last month having been relatively stable for the greater part of the second half of last year following a cocktail of interventions by monetary authorities to save the volatile local currency.

“RBZ would like to urge suppliers of goods and services recently paid by Government to refrain from participating on the parallel fx market in order to sustain price stability,” said the RBZ in a statement.

Sources say there has been a significant increase in local currency liquidity on the parallel market following government disbursement of payments to suppliers last month which has necessitated an uptick in the exchange rate.

The Zimbabwe Dollar is currently trading between ZW$900-1 050 against the American dollar on the parallel market from average of ZW$ 750 beginning of December. This has created a resurgence of the galloping gap between the parallel market rate and the official rate which is slowly moving at ZW$ 704.1765.

There are reports that Treasury is targeting fuel dealers who have for years been charging exorbitant prices to government departments.

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In November last year, government blacklisted 19 companies for inflating prices for their services and participating in illegal foreign currency activities which were undermining the value of the Zimbabwe dollar.

The 19 companies blacklisted so far, include Nariox (Pvt) Ltd, New Age Marketers, Pepwit Investmentsd, Tirumi Investments, Mwendo Africa, Alg World Investments, Lobmer Investments, Nisbank Enterprises, Sailgroom Enterprises, Wayvar Investments, Poweride Safaris, Azelion Energy, Blackdeck, Paza Buster, Redan Coupon, The Best Car Rental, The Legacy Car Rental, Josam Enterprises and Construction Warehouse.

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