A Reserve Bank of Zimbabwe (RBZ) official has rejected the notion that allowing people with free funds to pay for goods and services entails that the economy is on the path towards re-dollarisation.
A senior RBZ official who spoke to the Chronicle on condition of anonymity citing professional reasons disclosed that prices of goods and services will remain indexed in the local unit despite the acceptance of forex payment. Said the official:
We are not re-dollarising. What we are saying is that people can use their free-funds, which they already have in the country.
So, in the meantime, while there is this coronavirus, the last thing we want is to see people going to look for a bureau de change or some place to exchange their money so that they can buy at Pick n’ Pay or wherever they want to buy.
But remember that they (businesses) are still going to quote their prices in Zim-dollars but accept to be paid in US-dollars. Therefore, people are using free-funds that they already have.
RBZ Governor John Mangudya last week announced that individuals with free funds can pay for goods using foreign currency in response to the financial challenges caused by the novel coronavirus (COVID-19).
The Central Bank also fixed the exchange rate at US$1: ZWL$25 and suspended charges related to the provision of electronic payments.