Zimbabwe’s new rules criminalise setting prices above official exchange rate

Zimbabwe has announced new rules to curb, both the misuse of foreign currency and charging for goods or services above the official exchange rate.

This was as per a statutory instrument number 127 gazetted on Thursday.

Charging above USD:ZWL official exchange rate will attract a fine of ZWL50,000 or the equivalent of what has been charged, depending on what is the larger amount. So no more discounts for paying in USD.

Zimbabwe’s exchange rate at 84.73 to the greenback, while some entities, charge for goods and services at a rate as high as 150.

Also, if one pays for goods in USD, the receipt can not be made in local money. It also comes with a ZWL50,000 fine or the equivalent of what has been charged, depending on what is the larger amount.

You also are not allowed to charge only in forex and refusing to take local money as payment. The penalty is the same as above.

Then it gets wild. If you use money received from the auction system for other business than what you said you needed it for, you will get fined a cool ZWL1 million or an amount equivalent to that received from the auction, whichever is bigger.

And then banks too can get into trouble, if they do not verify properly information used in the auction. Their fine is ZWL5 million.

You can appeal. That is within 48 hours. And for every day the penalty is not paid, you get charged 5% penalty, right up to 90 days.

And if you fail to pay in that 90 day period, you could get more penalties, or jail time.