You are currently viewing our desktop site, do you want to download our app instead?
Moneyweb Android App Moneyweb iOS App Moneyweb Mobile Web App

NEW SENS search and JSE share prices

More about the app

Zimbabwe looks into currency abuse claim against fast-food giant

Investigating allegations of currency manipulation and pegging of prices at more than twice the official exchange rate.
Image: Bloomberg

Zimbabwe’s central bank is investigating allegations of currency manipulation and pegging of prices at more than twice the official exchange rate.

A restaurant receipt circulated on social media linked to an outlet owned by Simbisa Brands, the largest fast-food operator in the country, is the focus of the Financial Intelligence Unit’s investigation. “Perpetrators shall be brought to book,” the central bank said Thursday in a Twitter post.

Warren Meares, the managing director at Simbisa Brands, declined to comment. John Mangudya, the central bank governor, didn’t immediately respond to calls to his mobile phone.

Zimbabwe Finance Minister Mthuli Ncube warned businesses that price their goods and services using black market rates will have operating licenses suspended. The tax revenue authority will carry out impromptu audits to quantify potential liabilities arising from illegal foreign-currency trading, he said.

The Zimbabwe dollar changes hands on the streets of Harare, the capital, for Z$170 per US dollar, while the official rate is Z$88.55. Its recent drop in value has fueled inflation, with businesses raising prices to hedge against the currency volatility.

© 2021 Bloomberg

COMMENTS   2

Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in to comment.

SIGN IN SIGN UP

But, hey, Zim is the land of milk and honey. They have all the land.

HKGK.

So in effect what this article is saying, is even if you were to try and hedge for future expenses in SA, by exchanging Rands to Dollars now, you will in future still only be able to exchange at the then official quoted exchange rate (let’s be honest and admit to each other it is going to come back, the day we when go full Zim or Venezuela, which is inevitable)

We’re royally screwed!

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Podcasts

INSIDER SUBSCRIPTIONS APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING PORTFOLIO TOOL CPD HUB

Follow us:

Search Articles:
Click a Company: