RBZ shames listed milling giant, Natfoods, others over foreign currency facility abuse

By The Southern Eye | Jun. 15, 2021

"After investigations by the Financial Intelligence Unit and the Bank's Exchange Control Division, the listed entities hereunder which were abusing the foreign exchange auction system shall be dealt with in accordance with SI 127," the central bank said.

By Staff Reporter

Eighteen entities including the listed milling giant, National Foods, will face penalties from the Reserve Bank of Zimbabwe (RBZ) for allegedly abusing the foreign currency exchange system.

RBZ in a statement said the listed entities were in violation of the recently enacted Statutory Instrument 127 of 2021 (SI 127).

“After investigations by the Financial Intelligence Unit and the Bank’s Exchange Control Division, the listed entities hereunder which were abusing the foreign exchange auction system shall be dealt with in accordance with SI 127,” the central bank said.

“It is against these noble objectives that SI 127 was put in place to provide for penalties against errant entities that were at the forefront of abusing the foreign exchange auction system to the detriment of the stability of the economy.”

The central bank recently committed to engage with business to discuss modalities for compliance with SI 127 and efforts to ensure compliance to the statutory instrument will now be limited to only those who abuse the auction system.

“Going forward and in line with the recommendations from the business community on the need to continue to enhance stability in the economy, the Bank’s efforts to foster compliance in terms of SI 127 shall be limited to outlets that wantonly abuse the foreign exchange system, exchange rate manipulation and non-compliance with anti-money laundering rules and regulations,” RBZ said.