Home Business Create Efficient Policies Not Arrest Business Leaders – CZI Tells Govt

Create Efficient Policies Not Arrest Business Leaders – CZI Tells Govt

by Bustop TV News

By Lloyd Takawira

The Confederation of Zimbabwe Industries (CZI) has said arrests of some business people will not improve the foreign currency situation if there are no efficient policies in place.

This comes after the arrest of scores of illegal foreign currency traders over the past few weeks alleged to be involved in black market U.S. dollar trading. Government further threatened to suspend the licenses of businesses using black market rates to price their goods and services.

In a statement, the Confederation of Zimbabwe Industries (CZI) president, Kurai Matsheza told government that, bad policies blur the line and result in criminal activities

“Our engagement with the RBZ was fruitful therefore culminating in this statement. It is in this context that we are expectant that the policy and business correcting measures will work simultaneously to correct the situation. As we have stated in our submission, a heavy handed approach to problem that has its cause in sub-optimal  implementation creating arbitrage to the market will be unsettling the market.”

The CZI added that bad policies such as the forex auction system create room for criminality.

“Bad policies blurs the lines and creates criminal activities co- mingling with legitimate business.”  

The CZI also spoke against the RBZ’s  inappropriate policy response to the rising parallel market premium,” the organisation said, referring to the difference between official and black market currency values.

“Clamping down on informal foreign exchange trading in the absence of a viable formal market will have catastrophic consequences for the economy.”

The Zimbabwean dollar continue to weaken against the USD , with authorities blaming businesses for sabotaging the economy.

While the government has been arresting some business people , critics of President Mnangagwa and his administration feel he has not done enough as the real culprits are not brought to book.

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