Yesterday the government announced SI 127 of 2021 which put new rules and penalties of forex use. The Statutory Instrument looks like it was designed to stop businesses from pricing goods and services above the auction-rate more than anything else… The response by businesses as we saw in a tweet by journalist Hopewell Chin’ono is to increase local currency prices so that they don’t lose out to the prevailing 1:85 official rate as mandated by SI 127 of 2021.
My plumber went into a hardware shop to buy this stuff.— Hopewell Chin’ono Today (@daddyhope) May 28, 2021
It was Z$1600.
The shopkeeper said they are now forced by Mnangagwa’s Statutory Instrument to use the exchange rate of 82.
So in USD it was US$19.
Yesterday it would have been US$12.
He then paid US$7 for it in Mbare. pic.twitter.com/gVt8qstA2U
In light of this, we decided to go over some of the other potential consequences that may come up because of SI 127 of 2021 for consumers and businesses.
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