President Emmerson Mnangagwa has said the recent upsurge in the exchange rate between the Zimbabwean dollar and United States dollar was due to acts of economic sabotage that will not be tolerated.
Mnangagwa’s government, through the Reserve bank of Zimbabwe, last week froze accounts of companies belonging to Sakunda Holdings boss Kuda Tagwireyi over allegations that he was behind the sky rocketing of the exchange rate.
Tagwireyi is an ally of Mnangagwa.
On Tuesday, Mnangagwa said everyone was expected to act within the confines of the law.
“Government is equally pleased with the relative stability of the exchange rate over the past eight weeks. However, last week’s events of exchange rate manipulation, amounts to economic sabotage and should not be tolerated. We all need to adhere to the rule of law and foster discipline at all levels,” said Mnangagwa in his State of the Nation Address.
“Government is fully aware of the challenges faced by the public in accessing cash, which has resulted in some unscrupulous traders selling cash in exchange for electronic money. Appropriate measures are being taken to address the cash situation, which include a gradual removal of arbitrage opportunities created through multitier pricing.”
Mnangagwa said his government had noted with concern the emergence of monopolies as well as cartels which stifle competition and engage in unjustified price hikes.
“While Government will not revert to price controls, we are nonetheless, in the process of reviewing the Competition Act in order to introduce deterrent penalties to combat such business malpractices,” said Mnangagwa.