There will also be penalties for companies that misuse the forex they get from the Reserve Bank of Zimbabwe’s currency auction. Banks, too, may also be fined if the clients they represent at the auctions falsify information.
The government has, since the reintroduction of the Zimbabwe dollar in 2019, issued a series of regulations in an attempt to shore up the Zimbabwe dollar and stabilise the exchange rate, in the face of low forex supply and weak public sentiment on the local currency.
Here, newZWire details some of the key regulations under Statutory Instrument 127, and how they affect your business.
Fines for auction money
Under auction rules, companies applying for forex have to say what they want to use the money for. According to the new regulations, these companies or individuals will be fined for using the money for a different purpose.
The fine is a fixed penalty of Z$1 million or an amount equivalent to the value of the foreign currency taken from the auction, whichever amount is higher.
Charging only in forex
You can be fined for charging for goods and services only in forex and refusing to take payment in Zimbabwe dollars at the official exchange rate. If you do so, you can be fined Z$50 000 or an amount equivalent to the value of the foreign currency charged, or whichever amount is higher.
Banks can be fined over their clients
Companies or individuals participating on the auction apply through their banks for the money. According to the regulations, a bank can be fined if their client uses false information in applying for forex. According to the regulations, a bank is supposed to verify any information in the application. There must be no “information that the authorised dealer knows or ought to have known to be false in any material respect”.
There’s a fine of Z$5 million.
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