Reserve Bank scraps fuel coupon system over abuse

By Lance Guma
13 February 2006

Zimbabwe’s thriving black market has foiled a pilot project launched by the Reserve Bank to harness foreign currency from people wanting to buy scarce fuel. Under the scheme anyone with forex could purchase fuel coupons and trade these in for either petrol or diesel at participating fuel stations. The system introduced six months ago has now been scrapped after allegations that limited amounts of foreign currency were getting to government after all. Most Zimbabweans in exile began using the system to help their relatives back home. They in turn would either use the fuel or trade the coupons on the black market.
Central Bank governor, Gideon Gono, told the government owned Sunday Mail that the redemption of the coupons would be in local currency and the conversion would be done at the inter-bank rate prevailing as at February 13, 2006. Gono said some members of the public were engaging in speculative and parallel market activities and that this was the main reason behind the cancellation of the facility. All coupons have to be redeemed by February 28, effectively meaning service stations can no longer sell fuel in foreign currency.

The Reserve Bank had set up collection points for the foreign currency at specified petrol stations, so the claim that most of the forex was not getting to the right hands can only raise suspicion on the government officials appointed to collect it.