The Reserve Bank of Zimbabwe’s Financial Intelligence Unit (FIU) is targeting manufacturers who refuse to accept Zimbabwe Gold (ZiG) or limit transactions in the local currency.
FIU is concerned that the actions of some players in the manufacturing sector could lead to fresh volatility in the exchange rate and inflation rate.
FIU Director General Oliver Chiperesa told Business Times that several accounts of the offending manufacturers and suppliers have since been frozen. He said:
We started this targeted exercise against manufacturers last week and we have frozen the accounts of several industry players and penalised them. They have paid penalties and we will monitor if they are now in full compliance.
We are targeting more and more this week as we act on reports we are getting from the retailers.
One area that remains of concern to us is some manufacturers and suppliers who still restrict the amounts of ZiG that they receive from downstream traders.
We are using both engagement and enforcement against them. We have already frozen the accounts of a handful of manufacturers and penalised them.
We are expecting compliance levels to continue to increase in that sector, which will in turn have a cascading effect down the supply value chain and ultimately benefit the consumers.
Chiperesa cumulatively 534 accounts were frozen, and 161 were penalised for violating exchange control regulations. 12 foreign currency manipulators were caught between Monday and Tuesday this week.
He said that certain offenders will be barred from using financial services for a considerable amount of time.
An official from the country’s biggest lobby business group, the Confederation of Zimbabwe Industries (CZI) told Business Times that they were not charging exorbitant prices. Said the official:
We are charging a price that allows us to continue producing, we can’t charge a price that will see us close shop again. There is a need to engage so that we can have a common understanding.
Manufacturers accused the FIU of harassing struggling companies to impose “price controls”.
More: Pindula News