Govt to monitor companies allocated forex by RBZ

GOVERNMENT has proposed the establishment of a Foreign Currency Utilisation Monitoring Mechanism to monitor companies that receive foreign currency from the central bank.

EVERSON MUSHAVA

Addressing a Press briefing after the Cabinet meeting on Tuesday, Information minister Monica Mutsvangwa also called on the Reserve Bank of Zimbabwe to urgently assist the packaging industry whose products were affecting the prices of most goods in the market.

Mutsvangwa said although the supply of goods in the market was stabilising, government was concerned that the prices were still too high and that some companies, particularly pharmaceuticals were still demanding payment of their goods in hard currency.

“Going forward, Cabinet resolved as follows; that a Foreign Currency Utilisation Monitoring Mechanism be created to monitor those companies that are receiving foreign currency,” Mutsvangwa said.

“That the RBZ should urgently assist the packaging industry as it is affecting the prices of most products.”

The proposal comes after reports of abuse of foreign currency by some companies, resulting in shortage of commodities.

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“Efforts will be taken to scale up engagements between government and players in the pharmaceutical industry to come up with a mutually agreed solution. The ongoing efforts to boost medical supplies involving government-to-government agreements with India, manufacturing and other financial facilities should be expeditiously concluded,” Mutsvangwa added.

Government also said it was worried that the prices of commodities were still high, although supplies had improved since the lifting of import restrictions.

Mutsvangwa also said government would reinforce the country’s road traffic regulations through the use of integrated traffic management systems and increased highway police patrols, and would require drivers of public transport to undergo defensive driving and retesting after every two years.

This follows a head-on collision of two buses in Rusape that claimed 50 lives while over 70 were injured.

4 Comments

  1. the story which is not being told is that pharmacies are not demanding payment in forex only but accepting all forms of currency including the bond but using an outrageous rate and that is what need to be corrected as some drugs are procured through rbz forex allocation

    1. The whole pricing system for suppliers and retailers is STUPID! People will be taking the final US price and multiplying it by the ‘market rate’ but actullay imported contect in the goods make up a very small part of the overall price of the goods! Retailers have always ripped off the consumer as well as the suppliers – their mark ups are way too high and they make silly demands for all sorts of rebates and advertising costs they make on the poor manufacturer. This means retailers make disgusting profits and manufacturing next to nothing!

  2. If we are allocating to priority areas and applying for foreign currency to run operations why dont we jus now implement a new currency the Zimbabwean Dollar to provide a forceful mechanism of uniformity. The idea that some are exporters they have foreign currency so they need to retain all the amounts that’s not the way to run an economy strategically. Its not that everything run in a country has to be export and only those who do so are the only one to have those of value as opossed to uniformity. Every activity in an economy is important and uniformity in the economy is a priority and that has to be brought about by an uniform currency. Kungoti the major problem even in our education system is that of saying other professions are important than others hence at the university level we produce graduates in one profession who say they are most important as opposed to others. The real issue is the idea that everyone has to have activity. Activity that are aimed at producing for our total needs as a country. Thats now the job of central government to ensure that the correct plans are in place for everyone to have this form of activity and even rewards from these activities. For those areas we are not providing for ourselves, we import but the idea is that we cover this from our exports but internally using a uniform currency. At the moment we can us borrowing but now this issue yekuti vamwe vane hard USD we know in the end these funds will not be used internally munhu iyeye kana company iyoyo inenge yakutotenga outside that will be a leakage from the economy. Then because of education system yandambotaura we dont trust a fellow profession to produce anything of value. We are simply to lose those USD balances to things like DSTV, I phones, Vehicles to parliamentarian. So let us at the moment have a uniform currency and learn to value each other first

  3. The problem with our companies is that they want to capitalize the situation to get rich whilst the majority is suffering. They just want to sabotage the government.

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