Govt calls out unethical business practices

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Bulawayo, April 27, 2022 (New Ziana) –THE Government is committed to
tame the volatile parallel foreign currency exchange market and
encourages ethical behaviour in the local business sector, which tends
topeg prices against the illegal market rates, Vice President General
Constantino Chiwenga said on Wednesday.

His comments come against the background of a resurgent wave of price
increases as most retailers and businesses peg prices against parallel
market exchange rates which have gone as high as US$350:1 against the
official rate of US$150:1.

This is despite local companies getting foreign currency on the official
market through the weekly auction system run by the Reserve Bank of
Zimbabwe.

Addressing delegates at a business conference held on the sidelines of
the Zimbabwe International Trade Fair (ZITF), VP Chiwenga said: “I want
to implore the business community to complement government efforts by
practising ethical business ethos and desist from unjustified price
increases. Let us act in the proper manner and do business in the
correct manner.”

VP Chiwenga said Government, through various strategies including fiscal
and monetary policies, was pulling all stops to tame the unjustified
price hikes.

“The RBZ has moved to curtail recent resurgent price increases in the
economy and stabilise the volatile parallel market exchange rate through
increasing interest rates and further cutting down the quarterly targets
for money supply growth. These measures demonstrate Government’s desire
to stem further price increases whose primary driver is speculative
borrowing leading to the depreciation of the local currency.”

Speaking at the same event ZITF Company chairman, Busisa Moyo, said
stabilisation of the exchange rate was critical for prices stability.

“We are still to succeed in designing a framework that allows for a
single reference exchange rate that allows for stability in pricing and
incomes. We are still struggling with the issue of multiple exchange
rates which leads to distortions, arbitrage and the informalisation of
currency markets,” he said.

“A single reference point for the foreign currency rate allows us to
attract foreign direct investment, long-term financing and ultimately
improves social indicators to support a stable consumer spending for
business growth.”

New Ziana

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