The government has vowed to intensify its crackdown on suppliers and manufacturers across Zimbabwe who either refuse to transact in Zimbabwe Gold (ZiG) or charge parallel market exchange rates.
Presenting the 2025 National Budget, Finance, Economic Development, and Investment Promotion Minister Mthuli Ncube said that the Financial Intelligence Unit (FIU) will take action against businesses that refuse to accept ZiG or use parallel market rates. Said Ncube:
<blockquote>
The Financial Intelligence Unit (FIU), which has primarily concentrated on enforcement within the retail sector, is now broadening its scope to target non-compliant manufacturers and suppliers.
FIU offices will soon be established in areas beyond Harare to enhance monitoring and enforcement.
The FIU will take decisive action against businesses that refuse to accept ZiG or use parallel market rates.
</blockquote>
FIU Director General Oliver Chiperesa told <a href="https://businesstimes.co.zw/govt-intensifies-clampdown-on-non-compliant-businesses/">Business Times</a> that bank accounts of manufacturers and suppliers found violating regulations have been frozen. Said Chiperesa:
<blockquote>
Some manufacturers and suppliers continue to restrict the volume of ZiG they accept from downstream traders, which remains a challenge.
We are employing a dual approach of engagement and enforcement. Several accounts have already been frozen, and penalties imposed.
</blockquote>
He added that enhanced compliance within the manufacturing sector would generate positive ripple effects across the entire supply chain, ultimately benefiting consumers.
A manufacturer, who requested to remain anonymous, defended the pricing strategies, saying:
<blockquote>
We set prices that allow us to sustain production. Pricing policies that make operations unsustainable would lead to shutdowns. There is a need for engagement to foster mutual understanding.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

The government is getting tough on businesses in Zimbabwe that don't want to accept ZiG or use the right exchange rates. The Financial Intelligence Unit is going after these businesses and freezing their bank accounts. They want everyone to follow the rules to help the whole supply chain and consumers. Some businesses say they need to charge certain prices to stay in business, but the government wants everyone to work together to understand each other. The goal is for everyone to play fair and help the economy grow.

Crackdown On Businesses Rejecting ZiG And Charging Parallel Rates Set To Intensify

The Financial Intelligence Unit (FIU) is plotting a crackdown against individuals and companies allegedly involved in exchange rate manipulation.
When the Zimbabwe Gold (ZiG) currency debuted two weeks ago, the rate was ZiG13.56 per US$1, but illegal money changers are now trading at ZiG20: US$1.
FIU director Oliver Chiperesa told <a href="https://businesstimes.co.zw/fiu-plots-massive-crackdown/">Business Times</a> this week that the unit has identified wholesalers and manufacturers involved in exchange rate manipulation. He said:
<blockquote>
For our part as FIU, we have identified traders, especially wholesalers and manufacturers who are either not accepting ZiG or are putting an unjustified premium on the rate, and we are taking stern action on those.
We have given them a warning to comply by the end of the day today (Wednesday) after which we will be freezing their accounts and fining them.
Some are claiming they are still configuring their systems so are not yet accepting ZiG. We have told them that if it’s taking them that long to configure, they should stop trading until they are in a position to accept both currencies.
</blockquote>
Chiperesa said FIU is monitoring bank account activities to look for any infractions. He said:
<blockquote>
If we catch them, we will permanently freeze the illegal forex dealers’ accounts. We acknowledge that the parallel market is still there but generally, it is within the acceptable range of probably 10% of the official rate and that’s normal.
Whilst we don’t tolerate such issues, it’s still normal in an economy. But when we see some serious distortions we step in to investigate and take steps.
We are already in the streets before the money changers are too many in the streets, we don’t want to wait for the exchange rate to go beserk.
Apart from clearing them from the street, we are monitoring bank transactions so that we may identify red flags with some of the transactions occurring.
If we see transactions undertaken repeatedly in the same shop or outlet, we will permanently freeze those bank accounts.
We democratically allow people to open accounts with as many banks as one can but those with more than three accounts will certainly come under scrutiny.
When you see someone with four accounts there is something amiss, we will identify those as well. The dealers try to transact on many platforms to avoid being noticed but we are certainly now on them again on too many accounts.
</blockquote>
Zimbabwe Republic Police (ZRP) spokesman Assistant Commissioner Paul Nyathi last week said they were waiting for the go-ahead to launch the blitz on illegal money changers. He said:
<blockquote>
We are working together with the Reserve Bank of Zimbabwe to end this practice and the law will take its course without fear or favour.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Financial Intelligence Unit Plots Crackdown On Money Changers

The Reserve Bank of Zimbabwe’s Financial Intelligence Unit (FIU) says it will soon reign in businesses that are engaging in speculative behaviour thereby destabilising the market.
Some businesses are reportedly charging exorbitant rates above the 10% margin of the official exchange rate to cushion themselves amid a mounting financial crisis.
This comes as the difference between the official exchange rate and the street rate has widened significantly, with the latter rising to between ZWL$13000: US$1 and ZWL$15000:US$1. Last week the official rate was approximately ZWL$8600:US$1.
Oliver Chiperesa, director general of FIU, told <a href="https://businesstimes.co.zw/fiu-plots-crackdown/">Business Times</a> that businesses engaging in speculative behaviour will have their bank accounts frozen. He said:
<blockquote>
Unfortunately, we now need to intervene again to arrest the indiscipline and speculative behaviour.
We now have to intensify our surveillance and enforcement activities which we had scaled back since December.
All businesses found on the wrong side of the law will have their accounts frozen and will be penalised in terms of the law.
Apart from errant retailers, we will be particularly targeting some manufacturers and wholesalers who are being reported to us by the public.
Manufacturers and wholesalers sitting on top of the supply and pricing value chain are often guilty of triggering and fueling forward exchange rate setting, forcing retailers to do the same.
We are aware of businesses and individuals who are always ready to take advantage of any slight movement in the rates to engage in forward exchange rate setting which is why you see some going as high as ZWL$13 000 and ZWL$15000.
</blockquote>
The Zimbabwe dollar has never been stable since it was re-introduced through the back door as bond coins in 2016.
Zimbabweans prefer the more stable United States dollar (USD) and to a lesser extent the South African rand as both a medium of exchange and a store of value.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Financial Intelligence Unit Plots Crackdown On Errant Businesses

The Reserve Bank of Zimbabwe Financial Intelligence Unit (FIU) said that retailers and manufacturers who were exclusively charging certain goods in foreign currency and using the street market rate for currency conversion have agreed to reconsider their pricing models.
In an interview with <a href="https://www.sundaynews.co.zw/16-bank-accounts-frozen-in-rbz-price-blitz-overpricing-shops-penalised/">State media</a>, FIU director-general Oliver Chiperesa said that the Unit has received assurances from retailers that they will adjust their prices in line with the prevailing official exchange rate while also accepting Zimbabwe dollars for all products. Said Chiperesa:
<blockquote>
We engaged with them and they have assured us that they are relooking into their pricing models.
Yes, some had items that they were not allowing clients to pay for using the local currency, but we have told them that is not acceptable and they agreed to rectify it.
They also assured us that customers will be able to pay in local currency for all goods whose prices have been marked in foreign currency only.
</blockquote>
He, however, said there were still some rogue businesses who they continue to monitor to ensure that they were brought to book.
Chiperesa gave an example of one supermarket in Belvedere, Harare, saying it had a rate higher than the parallel market. He said:
<blockquote>
On Friday we found out that this supermarket was using an exchange rate of US$1:ZW$10 000 which has no relationship with even the parallel market.
So it is just a rate they came up with as forward pricing just to destabilise the rates because the most extreme parallel market rates were 8 000, but they are beginning to go down.
</blockquote>
Last week, the RBZ set the official exchange rate at US$1: ZW$5 900 while the street rate was hovering at US$1: ZW$9 000.
However, some large retailers were using at least US$1: ZW$10 000 for selected products while popular fast-food outlets were rejecting the local currency on the pretext that their point-of-sale machines were not working and therefore could not accept swipe and EcoCash payments.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Shops Agree To Sell Products In ZimDollars At The Official Rate - RBZ

The Reserve Bank of Zimbabwe Financial Intelligence Unit (FIU) says it has frozen additional bank accounts of companies and individuals for allegedly participating in fuelling the exchange rate on the parallel market.
Speaking to <a href="https://www.sundaynews.co.zw/16-bank-accounts-frozen-in-rbz-price-blitz-overpricing-shops-penalised/">State media</a> on Saturday, FIU director-general Oliver Chiperesa said that penalties for the offenders will be issued to them this week. He said:
<blockquote>
This past week we also froze an additional six bank accounts of traders who were also violating the regulations relating to the prescribed rates that must be used by traders and penalties will be issued to them this week.
The penalties are usually in the form of fines and as we said before repeated offenders will end up being recommended for cancellation of their trading licences.
We have also frozen the accounts of 10 individuals and companies who were involved in the parallel market.
They are not necessarily traders but they are companies in various sectors as well as individuals whom we traced their transactions and found that they were participating in fuelling the exchange rate on the parallel market.
Again, we will issue them with penalties in the course of the coming week.
</blockquote>
Chiperesa claimed that the black market rate is now starting to stabilise in response to measures and policies announced by the Government over the past few weeks. He said:
<blockquote>
We have witnessed that for the first time in the last five or six weeks, the black market rate is now starting to stabilise because of the effectiveness of the policies that have been put in place which we are supporting as the FIU by making sure that those who destabilise the foreign exchange are dealt with severely in terms of the law.
</blockquote>
On Friday, the street rate was hovering around ZWL$9 000, while the official rate last week stood at US$1: ZW$5 900.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

RBZ Freezes Six More Bank Accounts For Exchange Rate Violations

The  Reserve Bank of Zimbabwe’s Financial Intelligence Unit (FIU) says it has fined over 300 firms in the past 18 months for fuelling illegal foreign currency activities on the parallel market.
FIU director general Oliver Chiperesa told Business Times that some firms “dump” their proceeds onto the parallel market in search of scarce US dollars, thereby destabilising the local currency and fanning inflation. He said:
<blockquote>
We have fined over 300 companies in the past 18 months over their participation in the illegal trading of foreign currency on the parallel market thereby influencing the exchange rate.
Since 2021 we have taken this administrative action against these companies to instill discipline.
</blockquote>
Early last year, FIU froze the bank accounts of several companies including Transervet, Powerspeed trading as Electrosales, Halstead Brothers, and Enbee. Said Chiperesa:
<blockquote>
As FIU we check the anomalies in the banking sector, that is where we monitor how the money was moved, what where you buying, whether is it a normal operating company, and does it have the services you require, if we see that there is no linkage and there is no normal business relationship with the two companies we pick it.
After that, we dig deep and analyse the findings as well as engage the parties, resultantly many have confessed to taking part in the parallel market.
If we are tough with every business that we find guilty, the economy will ground to a halt. That’s why we try to strike a balance.
The main reason why we try to deal with the issues at FIU level is that our criminal laws are a bit weak on that side as most issues we have referred to the police were not effectively dealt with.
</blockquote>
Chiperesa said FIU now has the power to freeze accounts for 90 days from the previous 14 days to give the police the time to investigate.
The penalties stretch to over ZWL$1 million per violation but sometimes the violations could be bigger and attract bigger penalties.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

FIU Fines 300 Firms Over Parallel Market Activities

The Reserve Bank of Zimbabwe (RBZ)’s Financial Intelligence Unit (FIU) says it has blacklisted six contractors that were doing business with the Government for trading on the foreign currency black market.
The FIU has also frozen the bank accounts of five leading wholesalers for overcharging.
Speaking to State media, FIU director-general Oliver Chiperesa warned that they take stern action against companies involved in the parallel market. He said:
<blockquote>
So far, we have identified six or so (contractors) that we have taken action against, including referring to the Ministry (of Finance and Economic Development) for blacklisting. We expect the stability to continue.
I think Government suppliers are no longer really getting involved in the parallel market because they are aware of the consequence.
It’s only a few that are still doing it and we have taken stern action against those by freezing their accounts and referring them to the ministry.
So, following the action taken by the ministry last year, we continue to refer more companies periodically, as and when we find them.
</blockquote>
Last year, the Government blacklisted 19 suppliers and contractors for trading on the foreign currency black market.
Chiperesa said the FIU has frozen the bank accounts of five leading wholesalers for overpricing through forward pricing. He said:
<blockquote>
We are not confining ourselves to the parallel market drivers only, but also to wholesalers who are overcharging.
So far, in the last two weeks, we have frozen the accounts of five major retail and wholesale shops pending further investigations.
We are continuing with our work. Our teams are out there identifying more companies and entities that are doing the same.
There is really no excuse for the companies to be using parallel market rates at all at this stage with the near convergence that we have enjoyed over the last few months between the parallel market and official rates.
It’s just greediness that is driving some of these companies to do that.
</blockquote>
Some companies that are reportedly mopping up US dollars on the black market are understood to be also benefitting from the RBZ foreign currency auction market. | <a href="https://www.sundaynews.co.zw/rbz-blacklists-companies-11-firms-sanctioned-over-black-market-deals-overpricing-same-firms-reportedly-benefitting-from-rbz-auction/">The Sunday News</a>

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