National News

Naming, shaming key for market discipline

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In order to enforce market discipline, companies that are found to be charging outrageous prices above the 10% margin of the official exchange rate must be named and shamed.

With a crackdown planned this week, the Financial Intelligence Unit has to punish offenders severely in order to deter future offenders from committing the same crimes as the mayhem of non-compliance has been brought on by the enormous difference between the official exchange rate, which is approximately ZWL$8600:US$1, and the parallel market rate, which ranges between ZWL$13000: US$1 and ZWL$15000:US$1.

This indicates that businesses are deliberately exceeding the 10% margin to get through the present financial crisis.

The director general of FIU, Oliver Chiperesa, revealed to Business Times that his agency was preparing a major offensive against the business community.

FIU will also pursue manufacturers who are responsible for price increases throughout the whole supply chain.

Manufacturers and wholesalers sitting on top of the supply and pricing value chain are often guilty of triggering and fueling forward exchange rate setting, forcing retailers to do the same.

To create discipline in the market, anyone discovered in violation of the law ought to be publicly identified, humiliated, and severely punished

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