Yesterday, President Mnangagwa said the government is crafting a new law which will compel businesses that get forex from the central bank to sell their products locally in bond notes. Speaking in Kadoma, he said;
………On the other hand they come to queue for foreign currency at the Reserve Bank to buy these drugs from other countries and yet they want to charge people in foreign currency. We said whoever does that, we revoke their licence and they reverted to the local currency. We are now crafting a law that ensures that all products purchased from outside the country using foreign currency from Treasury should not be charged in foreign currency.
It’s true that some companies are benefiting from getting money from the Reserve Bank of Zimbabwe, yet they charge people for merchandise here in forex. Such rent-seeking behavior should be criminalized. With how pricey it is to buy forex using bond notes, it’s totally hurtful to ask people who earn bond notes to pay using forex. Accordingly, should this law coming to pass, it could provide a reprieve to many people who have been failing to buy things such as medical drugs because they don’t have foreign currency. The President’s statement comes after a provision that requires businesses to remit their taxes in the currency they would have received the payments was enacted 3 weeks ago.
Bond Notes are a currency of notes backed by a bond that the Zimbabwe government announced on 4 May 2016 by Reserve Bank of Zimbabwe (RBZ) governor John Mangudya. The $2 denomination of the notes was finally introduced on 28 November 2016. More notes were... Read More About Bond Notes
The Reserve Bank of Zimbabwe (RBZ) is the central bank of Zimbabwe. Its offices are located at number 80 Samora Machel Avenue in Harare. The Reserve Bank of Zimbabwe operates under the Reserve Bank of Zimbabwe Act, Chapter 22: 15 of 1964. The Act provides... Read More About Reserve Bank of Zimbabwe