Business Reporter
Zimbabwean businesses have been granted greater flexibility in pricing their goods and services, following the Government’s decision to scrap exchange rate controls amid increased currency stability and efforts to harmonise formal and informal market operations.
Through Statutory Instrument 34 of 2025, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube officially repealed a regulation introduced in May 2024 that restricted businesses from using exchange rates higher than the Reserve Bank of Zimbabwe’s (RBZ) official interbank rate. The move formally legalises what had already become a common practice in the market, where many retailers priced their products using alternative exchange rates.
This policy shift is expected to reduce pricing distortions and increase competitiveness, as market forces are now set to determine the applicable exchange rates in commercial transactions.
“The restriction has now been removed,” said Professor Ashok Chakravarti, a member of the RBZ’s Monetary Policy Committee. “Because of the stability of the local currency and the economy, the Government is confident that pricing in the market can be freed. It will stabilise based on competition amongst businesses.”
He noted that many businesses had been informally applying exchange rates of between 30 and 32 Zimbabwe Gold (ZiG) per US dollar, significantly above the official rate of 27. With authorities turning a blind eye, this dual pricing system had already become entrenched. “All we have done is legalise that particular type of pricing and behaviour in the market,” Prof Chakravarti added.
The Government’s move comes in response to growing pressure from business associations and economic analysts, who argued that the restrictions were out of step with market realities and undermined formal sector competitiveness.
