Mushayavanhu
made
these
comments
during
a
meeting
with
the
Tourism
Business
Council
of
Zimbabwe
(TBCZ)
last
week,
where
he
defended
the
key
monetary
policy
measures
introduced
by
the
bank.
He
said:
The
market
is
free
to
price
their
goods
and
services
at
whatever
USD
to
ZiG
rate
they
prefer
without
being
limited
to
using
the
official
RBZ
exchange
rate.
This
move
effectively
liberalises
the
pricing
system,
allowing
companies
to
adopt
exchange
rates
that
reflect
market
conditions.
Mushayavanhu
clarified
that
the
Financial
Intelligence
Unit
(FIU)
would
not
penalise
businesses
for
using
pricing
models
not
tied
to
the
official
exchange
rate,
as
long
as
the
pricing
remains
within
reasonable
margins.
He
further
warned
that
economic
agents
who
attempt
to
exploit
the
market
with
inflated
exchange
rates
would
soon
find
themselves
unable
to
compete.
RBZ
Deputy
Governor
Innocent
Matshe
added
that
the
realistic
exchange
rate,
based
on
economic
fundamentals,
should
be
US$1
to
ZiG22,
a
level
the
market
is
expected
to
reach.
Mushayavanhu
also
revealed
that
some
fuel
traders
had
approached
the
RBZ
to
offer
to
sell
fuel
in
ZiG
to
meet
their
local
obligations.
He
said
that,
over
time,
fuel
dealers
would
voluntarily
switch
to
selling
the
commodity
in
the
domestic
currency,
adding:
“We
do
not
want
to
return
to
long
queues
and
fuel
shortages”.
Post
published
in:
Business