Source: The Herald – Breaking news.
Richard Muponde–Zimpapers Politics Hub
The FIU said compliance from retail shops and the local manufacturing sector has been encouraging. However, it is within the informal sector where compliance was still problematic.
Sectors targeted by the FIU include tuckshops, restaurants, vendors, commuter omnibus operators, grocery shops, saloons, hardware shops and some manufacturers who are refusing the ZiG or using outrageous black market rates.
The FIU launched the blitz three months ago after the introduction of the ZiG, when it realised that saboteurs were targeting the new currency.
In an interview, FIU director general, Mr Oliver Chiperesa, said the unit was targeting the informal sector and some manufacturers, who have remained hot-spots of currency manipulation.
“So, over the last three months or since the ZiG was introduced, we have seen a positive uptake. We have seen the business community, mostly in the retail sector and the wholesale sector, generally all businesses in the formal sector accepting the ZiG and most of them are accepting it at the correct rate. Compliance levels have been very, very high. Since that acceptance, I think this is the reason why you see that there’s been some stability on the market in terms of the exchange rate,” Mr Chiperesa said.
“It is testament to the way in which the ZiG has been embraced and accepted by the trading community in general.”
“Yes, as far as the blitz is concerned; even when you have wide acceptance, you still have a few errant players, so our blitz continues to make sure that everyone complies.
“What I can say is that while we have wide acceptance by formal businesses, there’s still some limited acceptance by the informal sector. Although we are seeing increasingly positive signs even from that sector, we are still seeing some bit of resistance among some of the players, some small businesses and the informal sector,” Mr Chiperesa said.
Some manufacturers, who supply goods to retailers, were still limiting the quantities sold in ZiG.
“They are splitting their invoices to say if a retailer is buying from them, they would say 15 or 20 or 30 percent is payable in ZiG and then the rest they are demanding foreign currency in US dollars,” said Mr Chiperesa.
“We are now dealing and engaging with those suppliers and manufacturers. We have fined several already and we are putting our emphasis on those manufacturers and suppliers because they affect the entire supply chain downstream.”
He said compliance by suppliers and manufacturers will automatically trigger compliance levels downstream, especially within the retail community.
“I think those are the two areas that I would say are still causing a bit of problems, manufacturers and the informal sector. They have been a little bit slower in accepting the ZIG,” Mr Chiperesa said.
He appealed to the informal sector and other businesses to comply so that there is stability in the transacting community.
“My message to the market is that yes, the last three months we have seen some stability that we had not enjoyed in the foreign exchange market for a long time. So this stability is all down to the cooperation that we are getting from most businesses and we want to continue to encourage those who have been complying to continue doing so.
“We are also encouraging those that have not been fully embracing the ZiG or have been putting a premium, to desist from such practices,” Mr Chiperesa said.
The FIU recently froze 522 bank accounts belonging to companies and individuals, while 140 entities and individuals have been heavily fined, as part of an ongoing clampdown on those who violate exchange control regulations.
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