RBZ tightens screws on businesses over rates

RBZ tightens screws on businesses over rates

• Shangri-La Restaurant among early targets

Mako Jerera

The Reserve Bank of Zimbabwe`s Financial Intelligence Unit has fined local restaurant Shangri-La US$30 000 for using an illegal exchange rate of US$1 to ZWL240.

The Harare restaurant has 7 days to “show cause” why they must not pay the penalty.

According to a FIU Memo on or around 9th of February 2022, Shangri-La Restaurant and Takeaway which operates a restaurant in Harare, sold and advertised for sale products using an exchange rate above the ruling official rate of the day, that is to say, sold or advertised.

Currently the official exchange rate stands at $120.5, any business that does not adhere to the rate will be deemed to be in contravention of Statutory Instrument 127 of 2021 (SI 127 of 2021) published by government in 2021.

“For the said breaches involving various products, the following penalty is imposed on Shangri-La Restaurant and Takeaway: Shangri-La Restaurant and Takeaway shall pay a fine of US$30,000 (or equivalent in Zimbabwe dollars, at the ruling auction rate applicable on date of payment); and the amount referred to in para (a) shall incur a further penalty of 5% of the said amount or any portion thereof that remains unpaid, Ensuing Financial Integrity calculated starting from the date of service of this notice up to the date of payment,” the FIU memo read.

Shangri La were given 7 days to mount a defense against the penalty, after which they would be required to pay the fine within 48 hours.