Govt to rein in multi-pricing system

08 Feb, 2018 - 00:02 0 Views
Govt to rein in multi-pricing system Dr John Mangudya

The Chronicle

Dr John Mangudya

Dr John Mangudya

Oliver Kazunga, Acting Business Editor
THE Government is putting in place measures  to curb multi-pricing system and refusal of plastic money within the economy, Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mangudya, said yesterday.

In order to address the cash crisis, the monetary authorities have introduced the use of plastic money as well as electronic payment systems.

Some unscrupulous businesses have however introduce multi-pricing while others are refusing plastic money.

Presenting the 2018, monetary policy statement in Harare yesterday Dr Mangudya said businesses need to show respect to consumers and to exercise self-discipline under the new economic dispensation.

“Government is putting in place measures to curb the multi-pricing system within the economy.

“Multi-pricing and refusal to accept plastic money is counter- productive,” he said.

Dr Mangudya said it is against this background that Government came up with the 2018 Finance Bill which makes such conduct illegal.

He said the bill has now gone through Parliament and now awaits approval by the Senate.

Zimbabwe uses a basket of foreign currencies after it scrapped its inflation ravaged domestic currency in 2009 following a decade of economic instability.

In order to address the cash shortages, Government introduced bond notes in 2016.

The bond notes, whose exchange rate is at par with the US dollar, were introduced as part of measures to incentivise exporters and improve liquidity.

Dr Mangudya also announced in the 2018 monetary policy statement that:

“ To ensure stability of the monetary system, the Bank is strengthening its liquidity management systems to mop Real Time Gross Settlements (RTGS) money and make it more attractive for investment.

@okazunga

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