Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) has blamed the culture of profiteering among citizens for continuously causing exchange rate problems.
The remarks come at a time when authorities have witnessed dishonesty among some companies who despite having accessed foreign currency at reasonable premiums on the official auction market, proceed to charge for their goods and services at parallel market rates.
Last month, government was forced to implement a raft of measures which included the temporary suspension of lending by banks among others after noticing that companies were borrowing for speculative tendencies.
Addressing a gathering of Political Actors Dialogue (POLAD) Thursday, RBZ governor, John Mangudya lamented the rising arbitrage tradition.
He said such a tendency was damaging and highlighting that a few of the benefactors of the public sale system have been on the forefront of inspiring skyrocketing parallel-market charges.
“We have to change our arbitrage enterprise fashions. We do not wish to be blaming individuals, however we’re blaming the humanity in individuals.
“It is extremely unfair {that a} enterprise particular person to whom we have now bought international foreign money at a willing-buyer willing-seller fee right this moment thinks is intelligent go and promote the cash at a better fee. Is that honest?
“As a result of I might have bought my cash to you right this moment at $340 however you go and promote the cash at $500. So the problem we’re seeing is about behaviour,” said Mangudya.
Also addressing the delegates, Finance Minister, Mthuli Ncube bemoaned the arbitrage most cancers exhibiting itself within the economic system, citing retailers as the opposite main driver of the runaway costs within the economic system resulting in excessive inflation.
“Change fee has been the most important driver of inflation and the hole between the official fee (the now converged interbank and public sale charges) and the parallel fee is the motive force of this inflation.
“This has additionally been pushed by the habits of shops and different speculators. There’s sufficient arbitrage alternative that individuals wish to reap the benefits of and so they have been doing that. That is what has been driving the parallel market fee.
“What we’re noticing because the Authorities is that the parallel market isn’t just a spot fee however additionally it is a fee the place financial brokers are pricing meals desirous about substitute prices, desirous about substitute alternate charges going ahead.
“So it is sort of an ahead fee which partly explains the hole between the interbank fee and the parallel market fee, “he said.
