Mthuli Ncube Stands Firm On ‘Rigged’ Forex Rate

Finance and Economic Development Minister Mthuli Ncube said that Government will not attempt to impose any auction rate different from the prevailing one on the market as doing so will undermine the auction system.

Ncube said this in response to MPs in Parliament Wednesday after the legislators had called on Treasury to review the current official fixed auction rate of US$1: 83$ZWL.

Harare North MP Rusty Markham and Harare East MP Tendai Biti both MDC-A, had said farmers are suffering serious prejudice due to the mismatch between the official fixed auction rate of 1:83 and the alternative rate of 1:120. In response, Ncube said:

We cannot offer any other exchange rate. If we did that, then we will be undermining the auction system and we will be promoting these other markets for which we have no control over which also have shown to be quite disruptive.

Meanwhile, Jealousy Mawarire, a senior opposition official accused the government of “rigging” the auction system for the benefit of a few companies linked to the ruling Zanu PF party. He tweeted:

The exchange rate is already rigged, go to govt hospitals, get a quote in USD then request to pay in Z$. They will tell u the rate is 1:120, this is the reality prevailing, the 1:83 rate is rigging that only works with a selected few Zanu-PF linked companies when getting forex from RBZ.

A prominent Bulawayo-based journalist Zenzele Ndebele some shops are not using the official exchange rate but have adopted black market rates. He posted on Twitter:

I walked into a shop and asked what’s your ZW$:US$ rate they said 110. My change was US$3 and I was given ZW$240. I said how come your rate is 110. . my change in ZW$ is 330. It took nearly 20min serious exchanges to get my US$ 3.#Asakhe

More: NewZimbabwe.com

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