ACRONYMious? Gideon Gono does it again.
It seems that Mr Gono is in love with acronyms. The last few he has dished out: BACOSSI (Basic Commodity Supply Side Intervention), NEDPP (National Economic Develeopment Priority Programme), ASPEF (Agricultural Sector Productivity Enhancement Facility) and others have not really helped us.
But now he has come up with a whole new army of them and it is his hope that where BACOSSI and company lost some historic battles, these new battalions will win the war for us, as they are US dollar backed. It is my hope that at the end of all this the people and their Governor will not part acrimoniously or even ACRONYMiously.
Well, here they are:
BATTALION 1: FOLIWARS
(Foreign Exchange Licensed Warehouses and Retail Shops)
These will sell products in foreign currency. The FOLIWARS are being introduced for an initial period of 18 months up to 31 March 2010. Manufacturers would be able to sell their products to the licensed shops in foreign currency. However basic commodities that are produced locally will continue to be paid for in Zimbabwean dollars. The central bank Governor said 1000 retailers and 200 wholesalers will be allowed to sell in foreign money while motorists could also buy fuel in foreign currency. Gono stressed though, that the Zimbabwe dollar remains the official currency (i.e. Non-FOLIWAR soldiers are expected to still dominate this new army).
BATTALION 2: FELOCS
(Foreign Exchange License Oil Companies)
BATTALION 3: FELOPADS
(Foreign Exchange Licensed Outlets for Petrol and diesel)
All FOLIWARS, FELOCS and FELOPADS will be entitled to an 85% retention of their foreign currency in the revolving special FCA deposits which will be held a local Authorized banks.
The new battalions has been disbanded with the following instructions.
- In terms of pricing shops shall operate on the strict basis of profit mark-ups of no more than 30% on verifiable cost.
- Licensed shops to start operating around the 26 of September 2008.
- FCA retention for General Exporters has been increased from 55% to 75% retrospectively from 1 September 2008.
- Effective 1 September 2008 the RBZ will pay to gold producers the interbank exchange rate plus a delivery bonus of 150% in local currency.
- The RBZ has also increased the seed maize price from $13 500 tonne to $20 000 per tonne backdated for all 2008 deliveries.
I’ll see you at my FELOPAD! Bring your US dollars!