QUESTIONS

1. What are the related implications on future transactions arising from the Statutory
instrument (SI 81 A of 2024)?

The Statutory Instrument states that:

‘a natural or legal person shall be guilty of a civil infringement if he or she,

being a seller of goods or services, offers such goods or services at an
exchange rate above the prevailing average interbank foreign currency
selling rate published by the Reserve Bank of Zimbabwe.’

With regards to future transactions, this entails that the statutory instrument repeals the
premium in pricing which was set at 10% by Statutory Instrument 118A of 2022. What
this means is that all goods and services should be charged using the interbank rate
currently set at ZIG13.4823 per US$1 (as at 13 May 2024). The 10% allowance is
outlawed.

2. Is the promotion currently running affected in any way by the SI on exchange

control?

The promotion that is currently running, which offers a 10% discount for all clients
that settle their bills in USD is not in contravention of the Statutory Instrument. This
is because, what is prohibited by the SI is the charging of goods above the prevailing
interbank rate. A 10% discount does not go beyond the prevailing interbank rate.
Therefore, the billing system of Mutare city council is in compliance with the
Statutory Instrument.