SEVENTEEN pharmacies were caught red-handed using exhorbitant exchange rates ranging from ZWL$8 500 to ZWL$11 000 which will see their operating licenses forfeited, the Ministry of Finance and Economic Development said.
By Kuda Pembere
A majority of these pharmacies operating in Kadoma and Mutare were found flouting
exchange control directives by the Financial Intelligence Unit (FIU) in its ongoing investigations of businesses.
Some of the pharmacies were found not accepting the local ZWL$ currency.
“However, Government notes with concern that some market players continue to exhibit highly destabilizing forward pricing and speculation in outright violation of exchange control directives as well as standing government policy guidelines with respect to pricing and the use of domestic currency. This practice is particularly rampant but is certainly not limited to the pharmaceutical sector. 4) Ongoing investigations by the Financial Intelligence Unit have revealed that some pharmacies are using parallel market exchange rates ranging from between ZWL8 500.00 to ZWL11 000.00 against the USD, in complete violation of Government Policy and country’s anti money laundering regulations,” the Finance Ministry said in a statement.
The Finance Ministry said stern measures will be taken against the errant pharmacies.
“Government has instituted measures that will result in the suspension and/or cancellation of the trading licenses,” added the Finance Ministry.
Meanwhile, the Finance Ministry says its Wholesale Foreign Exchange Auction System is stabilising prices on the market. On Tuesday on this Forex Auction System, over US$460 000 was awarded with the Pharmaceutical and Chemical sector getting for retail auction US$3000.
“Under the National Development Strategy 1, Government has made considerable progress in stabilizing the economy, the exchange rate and general price of goods and services by implementing a variety of fiscal and monetary stabilization measures. “Government is committed to achieving lasting price stability and recently introduced the wholesale foreign exchange auction system which allows banks to access foreign exchange at market determined exchange rates for onwards transmission to their customers.
“This liberalized trading environment has allowed the market to stabilize and we have seen a market appreciation of the Zimbabwean Dollar and the containment of inflation, creating a conducive environment for business to operate,” noted the Finance Ministry.
