Reserve Bank of Zimbabwe (RBZ) has announced that it will widen its ongoing blitz on businesses across the country, defying the Government directive to accept the use of multicurrency, which also includes embracing the local currency, the ZiG, as a legal tender at the official rate when pricing products.
The operation, which was hitherto confined to Harare and its environs, will be extended to other provinces during the first quarter of the year as part of enforcing financial laws.
In an interview, RBZ Governor Dr John Mushayavanhu said when the Government enacts policies, it expects businesses and the general public to comply with the regulations.
On the financial side, these policies are enforced by the Financial Intelligence Unit (FIU) and other Government units that have instruments to deal with such malpractices.
“It should be noted that FIU monitoring and compliance operations have hitherto been concentrated in Harare and its environs, but beginning the first quarter of 2025, the FIU is expanding its enforcement operations into Bulawayo and other provincial capital cities,” said Dr Mushayavanhu.
“Some of the measures include heavy penalties for organisations that violate the exchange control regulations, and this will greatly improve compliance across the board. The FIU continues to urge the public to report issues of non-compliance, and they will swiftly respond as necessary.”
Dr Mushayavanhu said in promoting compliance, efforts by the FIU are beginning to bear fruit as some areas witness increasing levels of compliance in the smaller shops that are now accepting the local currency.
“Compliance is a confidence issue, and the RBZ continues to refine its monetary policy to achieve and maintain price and exchange rate stability, and confidence will be restored in the transacting public,” he said.
Dr Mushayavanhu noted that while the informal sector compliance levels are still far below the formal sector, it is encouraging to note that the trend is improving.
“The Government is working towards increasing usage of local currency in all parts of the country including for settlement of taxes, purchase and sale of goods and services in local currency.
“It is, however, important to take cognisance of the increased reliance on digital or electronic payment methods over cash, which has, to an extent, seen a reduction in the demand for cash and resultantly lower the proportion of cash in circulation to broad money,” he said.
Dr Mushayavanhu said the foreign exchange market has been liberalised to reflect free market forces, adding that there should be no incentive for trading on the parallel market.
“It has been noted that cases of exchange control-related violations have significantly declined over the last quarter of 2024, aligning with the exchange rate stability that has been obtained,” he said.
“RBZ will continue to implement measures to augment the current stability and will remain mindful of balancing currency and price stability with economic growth.”
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