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Government bars State agencies from charging fees in US dollars

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By Bloomberg news


Zimbabwe banned government ministries and local authorities from charging fees and levies in foreign currency, the Ministry of Finance said.

“Treasury notes with concern that some government agencies, as well as local authorities are now advertising in the media prescribing payment for some services exclusively in foreign currency,” George Guvamatanga, the finance secretary, said in the circular seen by Bloomberg and confirmed by the Treasury.

Currently, the Zimbabwe dollar trades at 546.82 to the US currency but changes hands for as much as Z$750 on the parallel market, making it attractive to be paid in foreign exchange.

The local dollar’s depreciation this year has helped fuel inflation that reached 285% in August.