Analysis Of The Impact Of Statutory Instrument 81a Of 2024 On Business And National Competitiveness - National Competitiveness Commission

Analysis Of The Impact Of Statutory Instrument 81a Of 2024 On Business And National Competitiveness

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The Minister of Finance, Economic Development and Investment Promotion amended the Exchange Control Act [Chapter 9:23] by inserting a rule that prohibits businesses in Zimbabwe from using any rate other than the interbank rate when setting their prices.

The amendment was done through Statutory Instrument (SI) 81A Exchange Control (Amendment of Schedule to Exchange Control Act) Notice, 2024, gazetted on Thursday, 09 May.

The SI introduces significant changes to the Exchange Control Act. The main provision is the regulation of exchange rates at which goods and services can be offered by sellers, with strict penalties for non-compliance.

Key Provisions of the Statutory Instrument include:

Regulation of Exchange Rates for Goods and Services: Sellers must offer goods and services at an exchange rate not exceeding the prevailing average interbank foreign currency selling rate published by the Reserve Bank of Zimbabwe.

Penalties for Non-Compliance:

Fixed Penalty: A fixed penalty of 200,000 ZiG or an amount equivalent to the value of the foreign currency charged, whichever is greater.

Cumulative Penalty: A daily cumulative penalty of 5% of the outstanding fixed penalty for up to 90 days.

Suspension of Penalty Order: A 48-hour period for the defaulter to show cause why the penalty should not be imposed.

The paper therefore analyses the likely impact of the SI provisions to business and national competitiveness and propose areas of intervention in support of the proposed fixed exchange rate regime.

To get the full report click the link below;
https://www.ncc-zim.co.zw/document/the-analysis-of-the-impact-of-statutory-instrument-81a-of-2024-on-business-and-national-competitiveness/



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