By Business Reporter- Businesses in Bulawayo are rejecting the new Zimbabwean dollar (ZiG) and turning to the black market for exchange rates.

The black market exchange rate has surged to US$1:25 ZiG, in direct defiance of government directives regarding the use of the new currency.

This defiance undermines the government’s efforts to stabilize the currency, maintain its utility, and control inflation, further diminishing consumer purchasing power and contributing to economic instability.

The official exchange rate, according to the government, remains at approximately ZiG14 to the USD.

However, state media reports indicate that some businesses in Bulawayo have resorted to faking network issues with their point-of-sale (POS) machines to justify exclusive trading in foreign currency.

The Reserve Bank of Zimbabwe (RBZ)’s Financial Intelligence Unit (FIU) has established a hotline and WhatsApp number for the public to report businesses rejecting the local currency or using black-market exchange rates.

In May, the government promulgated Statutory Instrument 81A of 2024, enabling it to punish those found flouting the exchange rate regulations. Under these regulations, individuals and businesses found charging beyond the RBZ-gazetted exchange rate are liable to a fine of ZiG200,000.