OK Zimbabwe has stopped accepting USD payments due to SI 127
The long arm of Statutory Instrument 127 of 2021 (SI 127 of 2021) has reached one of Zimbabwe’s largest retailers. In a note to all branches, OK Zimbabwe will not accept payments in USD due to the revenue separation provision under SI 127 of 2021.
To: all branches
Att: all branches, financial services, finance, operations managers
From: Business Information Systems
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 cash desks, with immediate effect. Our cash register receipts do not yet comply with the SI which states that among other things, a seller of goods or services is not authorized to issue a buyer with a receipt in Zimbabwean dollars for payment received in foreign currency, to record claims. sales other than in the currency in which the sale was made.
OK Zimbabwe buys and sells foreign currency, through our RBZ authorized bureau de change branches, therefore branches are advised to encourage customers intending to buy at the cash desk with foreign currency to sell their currency. forex at the office because we offer a much better rate than at the cash desks.
This note will also extend to its subsidiaries, Bon Marche and OK Mart
The first part on SI 127 of 2021 and receipts is quite straightforward, but also highlights the fact that companies did not have enough time to calibrate their buying points.
Second, this memo shows OK Zimbabwe’s privileged position with respect to the adjustment to SI 127 of 2021. As mentioned above, some OK supermarkets have in-house money changers and, depending on branch guidelines, may y divert customers to convert USD into local currency. .
This is something that not all retailers have and many customers will be forced to give up shopping or go out and find a bureau de change and convert the USD at the black market rate.
Finally, the fact that OK Zimbabwe has Bureaux de Change gives them an unfair advantage. (following SI 127 of 2021). What I mean by that is they can buy US dollars from customers (who are ready) for the local currency making a profit as well as the goods / groceries that these same customers will buy in the OK supermarkets.
It should be noted that what OK does is not illegal. It’s just that they are much better positioned than most companies, which is one of the nuances the government seems to overlook when it implements these sweeping reforms …
You should also check
We have reviewed 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