Zimbabwe's central bank has tightened the rules governing the trade of foreign currency by money exchange offices with immediate effect.
The rates offered by exchange offices must be 7% above or below the interbank mid-rate, the central bank said in an emailed statement. Failure to comply would result in either heavy financial penalties or license revocation, it said.
This comes after the country experienced a massive jump of foreign currency rates, especially on the black market last week.
In a statement released by the central bank on Friday last week, Bureaux de Change will, immediately, start selling foreign cash only to individuals for foreign travel.
The Bureaux de Change shall only sell foreign currency cash to individuals for foreign travel, upon submission of a passport. The current cash limits for Personal Travel Allowance of USD300 per day, per travel, and up to a maximum of USD10,000 per year, should strictly be adhered to. The Bureau de Change are, henceforth, required to endorse passports of travelers who would have purchased foreign currency," the statement read.
Business travel allowances have been set to a limit of US$400 per day up to a maximum of seven days. As a requirement, Bureaux de Change must display their exchange rate on FX rate boards.
The southern African nation has 200 licensed exchange outlets.
Since a parity peg to the US dollar was dropped in February, the local currency has slumped to 14.43 to the dollar, making it the world's worst performer. It's even weaker on the parallel market at 20.3 versus the U.S. currency, according to marketwatch.co.zw, a website that tracks unofficial rates.