The long arm of Statutory Instrument 127 of 2021 (SI 127 of 2021) has reached one of Zimbabwe’s biggest retailers. In a memo to all branches, OK Zimbabwe will not be accepting USD payments because of the separation of receipts provision under SI 127 of 2021.
Memoranda
To: All Branches
Att: All Branches, Financial Services, FInance, Operations Managers
From: Business Information Systems
Date: 28/05/2021
Ref #: CNGEFX/05/21
REF: ACCEPTANCE OF FOREIGN CURRENCY AS A PAYMENT OPTION
This memorandum serves to inform all branches that as a result of Statutory Instrument 127 of 2021, they can no longer accept foreign currency as a payment option at the tills, effective immediately. Our receipts at the tills are not yet in compliance with the SI which states that inter alia, a seller of goods or services is not allowed to issue a buyer thereof a receipt in Zimbabwe dollars for payment received in foreign currency, to record sales other than in the currency in which the sale was conducted.
OK Zimbabwe is buying and selling foreign currency, through our RBZ licenced bureau de changes branches, therefore, branches are advised to encourage customers intending to purchase at the till with foreign currency to sell their forex at the bureau as we are offering much better rate than at the tills.
OK Zimbabwe
This memo will also extend to its subsidiaries, Bon Marche and OK Mart
The first part about SI 127 of 2021 and receipts is pretty straightforward but also highlights the fact that businesses weren’t given enough time to calibrate their purchase points.
Secondly, this memo shows OK Zimbabwe’s privileged position when it comes to adjusting to SI 127 of 2021. As mentioned above, some OK supermarkets have Bureaux de Change in house and, as branches were directed, can divert customers there to change USD into local currency.
This is something that not all retailers have and many customers will be forced to either abandon their groceries or go out and find a money changer and get the USD converted at the black market rate.
Lastly, the fact that OK Zimbabwe has Bureaux de Change puts them at an unfair advantage (in the wake of SI 127 of 2021). What I mean by this is that they can buy up USD from customers (who are willing) for local currency making a profit off that as well as the wares/groceries those same customers will buy in OK’s supermarkets.
It should be noted that what OK is doing isn’t illegal. It’s just that they are at a far better position than most businesses, which are some of the nuances that the government seems to overlook when it institutes these sweeping reforms…
You should also check out
We went over some of the potential consequences of SI 127 on our Technikari Podcast. You can play or download with the link below:
Cover Image Credit: The Chronicle
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26 comments
Hayas i just remember the artical you were scrutinizing the RBZ incentives
Little did we all knew that SI 127 was just around the corner
Our government is not that Straight forward its not transparent
Zvine kahutsotsi sooo kkk
Keeping money under the pillow is a way to go in Zimbabwe especially if they are USD never trust your money with a crook
What’s the impact of this SI to the Stock market?
This is just a way to raise funds gvt ayisisina any strategies of getting money yet knowing that Zimbos have Forex,remember the Nostro issue that led to accounts being frozed and account holders give RTGS “it will not work” pamberi nekuisa mari pasi pe Pillow
What a shame? The whole thing is just obnoxious and unsympathetic.
Manje mantra. Mhamha dze vanhu
Manje manyura mbavha dzevanhu
Typical government crooks. Mbavha… Focused on taking from the people.. as per norm… they Never do anything helpful. Always make it worse… Basop Zimbabweans…more tax money going to be eaten and used to buy Houses and cars.. mirauone
We cannot continue to be so blind to the obvious and still claim to be an educated lot as Zimbabweans.
The only sustainable option is using our own currency across the board. Its the only way it can gain value.
The problem is we have too many half-backed theorists who are married to the ‘trickle-down’ economics of the Chicago School. They can’t see nor hear any evil about their ideas which do not address 21st Century development needs.
Production and exchange create value of a currency – in itself the USD$ has no value.
Think about it. Why is it that despite owing trillions to Chinese US still has a global demand? Outside evident and obvious manipulation of the international monetary system, we the natives of Africa and elsewhere still have an insatiable appetite for stuff American, we still chase after their produce disproportionately. Lets be practical or else wallow in economic strife generation after generation.
Posting comments in today’s Zimbabwe can be a waste of time. It appears there is a general bias towards publishing views from people who have never written anything on real economics, those who see evil in everything government does. Its a shame.
Unotoshaya kuziva kuti zviri kumbofamba sei
Zim zim zim
Haaaaa…just when you think things are starting to look up in Zim. And then we are told to persevere, to smile through it all. No wonder people are bailing the first chance they get.
Zim it’s a shame. Duty we pay in US dollars what a shame
Hapana zvaunoziva hanti
It is very interesting what Zimbabwean can do.who are your economists? They have no heart.
Kkkkkkk Zimbabwe is open for business
Its a great move which has been done namagunja only pple don’t know kuti its for their benefit. Look fo example chinhu chauri kuchajiwa 120$ maOk unenge wakuchiwana at around 90$, zvinongoda munhu anounderstander economics chete.
Whatever this government does, you must know that there’s something behind it. There’s someone who’s going to make a killing out of this.
It’s an advantage to us but I foresee the rise of goods in zwl coz wt USD it was more like promotion prices manje tichatenga asi zvichakwira and hope the President won’t say kana usina chokukwidza kwidza trouser
Our economists must go back to school and learn the rules of demand and supply. What is happening is not in line with economic terminology
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I have a feeling that someone is trying to mop up usd in the market and the rtgs is so substantial that it can cause currency depreciation. Remember that time some China guys who shook the market when they where paid by the government. Cartels are at it again they want all you usd. Do give it to them keep it. Vajaira kudya zvemahara. Imbwa dzevanhu.
Yh Zimbabwe munojairira vanhuu
I love your zimbabwe because your legendary Africans country in africa roberts Mugabe rip legandary black man in Africa i love you diaspora European brothers tavaine clarke
Ok nice