The Confederation of Zimbabwe Industries (CZI) has denounced government plans to arrest business leaders violating laws to do with trading foreign currency.
CZI says the move will cause panic and fear in the industry. Said CZI’s president Kurai Matsheza:
The arrest of business leaders will only serve to destabilize the relationship between business and authorities as the two need to work together to reindustrialize the economy in pursuit of Vision 2030. Fear will drive business decision making as has happened with the 2007 arrests with resultant shortages as companies could not find any other ways of funding their forex requirements legitimately. The arrests will also cause unnecessary panic in the market and erode consumer confidence in government policies.
In the meantime, we urge the authorities to ensure that the Auction System is managed in the true spirit of the Dutch Auction System. Additionally. we encourage continuous dialogue between business representatives, the central bank and the authorities to find an amicable way out the current foreign exchange challenge focusing on averting the imminent crisis while creating sustainable solutions to solve the long-standing currency issue as a way to boost economic growth.
CZI does not in any way condone any errant or unlawful behaviours.
The statement is issued amid a rising inflation attributed to the fall of the Zimbabwe dollar mainly on the parallel market where some businesses are getting foreign currency to restock.
The Reserve Bank of Zimbabwe (RBZ) sells foreign currency every Tuesday at the auction but the central bank has not been paying the money in time and has a backlog.
The government announced a cocktail of measures meant to curb the rise of the parallel market rate and the arrest of business leaders “fuelling” the rise of the rate is one of the proposed measures.
More: Pindula News