- Foreign currency auction system was introduced last year in Zimbabwe to arrest exchange rate instability and improve price discovery.
- RBZ has been taking stern actions in the past months on companies that have been abusing funds obtained from the auction system.
A foreign currency auction system was introduced last year in Zimbabwe to arrest exchange rate instability and improve price discovery. RBZ has been taking stern actions in the past months on companies that have been abusing funds obtained from the auction system. Zimbabwe government has issued a resolution on Aug 25th to take punitive action against Companies importing fuel using foreign currency obtained from the Reserve Bank of Zimbabwe’s auction system but refusing to retail in local currency.
The offenders will be prosecuted and their fuel trading licences will be cancelled said Minister of Information, Publicity and Broadcasting Services Monica Mutsvangwa at a post-Cabinet briefing. The cabinet had noted that some fuel companies misused the foreign currency obtained from the Reserve Bank of Zimbabwe auction to procure fuel by selling the fuel to consumers in foreign currency. She added that Government had the list of the companies and retail outlets abusing the forex facility and measures will be taken against them.
The Minister said that prosecution of offenders, cancellation of fuel trading licences, or heavy fines as decided by the team of relevant line ministries in conjunction with the Reserve Bank of Zimbabwe as the source of the funds so abused, are some of the actions decided upon.
