Zimbabwe enforces fines for businesses avoiding official exchange rate

Zimbabwe is taking a stern stance against businesses using inflated exchange rates as it strives to stabilize its newly introduced gold-backed currency, the Zimbabwe Gold (ZiG).

According to a government notice obtained by media, any business found employing an exchange rate exceeding the official rate of 13.5 ZiG per U.S. dollar will face a hefty fine of 200,000 ZiG (equivalent to $14,815).

The notice, issued late on Thursday, declares that offering goods or services at a rate higher than the prevailing interbank foreign currency selling rate will constitute a civil infringement.

In recent weeks, the government has intensified its efforts to support the ZiG, which was launched in early April. This included cracking down on illegal foreign currency trading operations last month.

Reports indicate that certain businesses, notably supermarkets, have been levying a premium above the market rate for transactions conducted in the new currency. Meanwhile, informal traders have been hesitant to accept the ZiG.

In a bid to solidify the ZiG’s position, Zimbabwe’s Treasury has moved decisively to enforce its use as the official medium of exchange for all transactions.

This marks Zimbabwe’s fourth endeavor to establish a local currency within the past decade. The country recently abandoned the Zimdollar after it experienced a staggering 70% devaluation since the beginning of the year.

Scroll to Top