Mr. Speaker Sir, it is envisaged that implementation of the regulations will have positive impact through;
- Consumer protection from abuse by unscrupulous businesses
- Increased financial inclusion
- Convergence of parallel and formal exchange rates.
Price stability of goods and services, customers will be able to settle payments of goods and services in either currency. The S.I. promotes market discipline which is a key anchor of the price and financial stabilisation strategies. The banning on cross-currency receipt issuances where goods are sold in USD$ would be receipted in ZW$ ensures that vulnerable consumers are protected. This is in line with standard Consumer Rights and expectations in the region and elsewhere. The widespread abuse of the auction platform through arbitrages will be eliminated by making sure that banks adhere closely to KYC and due diligence procedures. This will ensure that foreign currency is available to genuine importers and not speculators. Hon. Members, the implementation of this noble initiative will require the auction system to increase access of forex to more businesses.
Mr. Speaker Sir, after all has been said and done, these regulations have been promulgated to urgently maintain exchange rate stability, enforce compliance and market discipline in financial transactions thereby protecting the consumers. Exchange rates can be any figure but it does not generate forex. What is critical is production and the consolidation of stability which is critical for us to move forward as a country and is supported by genuine progressive corporates, organised labour and consumers. I thank you.
THE HON. SPEAKER: Thank you Hon. Minister for the statement. Are there any questions for clarification?
HON. CHINYANGANYA: Thank you Mr. Speaker Sir and I want to thank the Hon. Deputy Minister for giving us the Ministerial Statement…
THE HON. SPEAKER: Can you put your gadget nearer and try to speak up a little bit?
HON. CHINYANGANYA: Thank you Mr. Speaker Sir for giving me the opportunity to pose a few questions to the Hon. Deputy Minister on the Ministerial Statement. Mr. Speaker Sir, I wonder if the Deputy Minister is aware of the rate at which prices of commodities have gone up since the pronouncement was made.
I will give a practical example. Today I went to Halsteds intending to buy rhinoset. Last week I bought it for $11.00 for 25kgs and today, I was told that it is now $18.00. I then went to Lighting World; chandeliers that were costing $250.00 now cost $750.00 and other forms of commodities. This is how prices have increased in the past four days. My question to the Hon. Deputy Minister is, what measures are being taken by the Government to make sure that all those retailers and wholesalers who have inflated their prices are punished? I feel that the proposed $50 000.00 penalty to business people is nothing but it is the ordinary people in the streets who are suffering. Their salaries are not going to be increased yet the prices of commodities have gone up three to four times. So what is the Government going to do to cushion the ordinary citizens…
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