Govt to monitor companies allocated forex by RBZ

GOVERNMENT has proposed the establishment of a Foreign Currency Utilisation Monitoring Mechanism to monitor companies that receive foreign currency from the central bank.

Addressing a Press briefing after the Cabinet meeting on Tuesday, Information minister Monica Mutsvangwa also called on the Reserve Bank of Zimbabwe to urgently assist the packaging industry whose products were affecting the prices of most goods in the market.

Mutsvangwa said although the supply of goods in the market was stabilising, government was concerned that the prices were still too high and that some companies, particularly pharmaceuticals were still demanding payment of their goods in hard currency.

“Going forward, Cabinet resolved as follows; that a Foreign Currency Utilisation Monitoring Mechanism be created to monitor those companies that are receiving foreign currency,” Mutsvangwa said.

“That the RBZ should urgently assist the packaging industry as it is affecting the prices of most products.”

The proposal comes after reports of abuse of foreign currency by some companies, resulting in shortage of commodities.

“Efforts will be taken to scale up engagements between government and players in the pharmaceutical industry to come up with a mutually agreed solution. The ongoing efforts to boost medical supplies involving government-to-government agreements with India, manufacturing and other financial facilities should be expeditiously concluded,” Mutsvangwa added.

Government also said it was worried that the prices of commodities were still high, although supplies had improved since the lifting of import restrictions.

Mutsvangwa also said government would reinforce the country’s road traffic regulations through the use of integrated traffic management systems and increased highway police patrols, and would require drivers of public transport to undergo defensive driving and retesting after every two years.

This follows a head-on collision of two buses in Rusape that claimed 50 lives while over 70 were injured.–

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