The Zimbabwean government has issued a stern warning to businesses and corporations, stating that any entity utilizing inflated exchange rates 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 Southern African nation in a notice issued on Friday reiterated that the sole legally recognized exchange rate within its jurisdiction is its newly introduced gold-backed currency, the Zimbabwe Gold (ZiG).
According to the notice, individuals offering goods or services at exchange rates surpassing the prevailing interbank foreign currency selling rate would be deemed guilty of a civil infringement.
Efforts by the government to maintain the stability of the ZiG since its inception in early April have been widely reported. Authorities launched a crackdown on illegal foreign currency traders last month in support of this endeavor.
However, some businesses, including supermarkets, have reportedly hindered the government’s efforts by charging a premium above the market rate for transactions conducted in the new currency. Additionally, informal traders have shown reluctance to accept the ZiG.
Following the treasury’s move to enforce the use of ZiG as the official unit of exchange for transactions since Tuesday, Zimbabwe is now on its fourth attempt at establishing a local currency within a decade.
Last month, the country abandoned the Zim dollar after it experienced a 70% depreciation since the beginning of the year.
Despite reports indicating a decline of the newly introduced gold-backed currency on the local black market, officials remain steadfast in their assertion that the currency is gaining strength and holds a promising future.
Radio broadcasts even feature songs encouraging citizens to embrace the currency, referred to as Zimbabwe Gold, or ZiG, which debuted on April 5 trading at 13.56 to the U.S. dollar.
YOU MAY ALSO READ: Chad deploys soldiers across country hours after junta leader Déby wins presidential election