As part of the announcement that civil servants were now going to start getting an allowance in USD, Finance Minister Mthuli Ncube asked businesses to start displaying both ZWL and US dollar prices. A lot of shops simply continued to show only Zimbabwean dollar prices. However, shops such as OK and FoodWorld do take US dollars at the prevailing exchange rate. The authorities have now gazetted Statutory Instrument 185 of 2020 published on 24 July 2020 which makes dual pricing mandatory.
Pursuant to the Bank’s Press Statement of 17 June 2020 directing providers of goods and services to display, quote or offer prices for such goods and services in Zimbabwe dollar and foreign currency at the ruling market exchange rate as determined by the foreign exchange auction, a significant number of business entities have taken heed of this requirement. Regrettably, some business entities have not complied with the moral suasion directive. With the amendment of the law now having been effected through Statutory Instrument 185 of 2020 published on 24 July 2020, the law will now take its course in respect of non-compliance.RBZ statement on the issue of dual pricing
The bank also said shops are supposed to bank the USD cash they receive in line with Bank Use Promotion Act. While a lot of shops will probably have no problem displaying dual prices, they will scoff at this bank your cash directive. Zimbabwean banks are a black-hole, they take and take and give nothing back in return. While they will gladly take your deposits, you will not be able to withdraw that cash when you need it. Also the Finance Minister and his vile 2% tax (which now also applies to USD transactions) actually make banking cash a costly move that with punitive tariffs imposed on transactions.
Individuals and entities are reminded to bank cash received from the sale or provision of goods and services as required by the Bank Use Promotion Act [Chapter 24:24]. The requirement to bank cash extends to foreign currency received in respect of sale or provision of goods and services. Banking of cash will enhance circulation of money within the economy.
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