'New Forex Measures Will Harm Business'

Finance and Economic Development Deputy Minister Clemence Chiduwa said that importers will soon be required to declare the legal source of their foreign currency under a new policy that is being crafted.

However, Confederation of Zimbabwe Retailers Association president Denford Mutashu asserted that the policy will have a negative impact on business. He said:

The first problem with such a regulation is that most Zimbabweans have of late not been conducting their business through the formal banking channels, so if they were to be asked to indicate the source of foreign currency you will find that most will struggle.

… it will limit legal imports as most traders will prefer to pay a kick-back here or there while some will stop trading and keep their foreign currency in their homes rather than being asked to justify its source.

Chiduwa made the remarks in a post-Budget media interface he addressed on Friday in the company of Minister Mthuli Ncube and permanent secretary George Guvamatanga.

The policy is aimed at killing the foreign currency black market, with illegal foreign currency deals being conducted openly in all major cities and towns.

More: The Herald