The Reserve Bank of Zimbabwe (RBZ) has blocked plans by bakers in the country to raise bread price from an average of ZW$60 to ZW$80 arguing that the move was not justified.
The RBZ governor Dr John Mangudya also told bakers during last week’s Grain Millers Association of Zimbabwe (GMAZ)’s online meeting that was also attended by bakers and millers that bakers and millers will now be prioritised for foreign currency allocation during the weekly forex auction. He added:
Bakers have no reason to justify any bread price increase because when the price of bread was $79, it was based on a speculative black market rate of between $100 and $120 per US$1.
We expect bread prices to go down given the fact that bakers are now accessing forex at the auction at a much lower rate of $80 against US$1.
Prices of commodities in the country have been going up in recent months mainly due to the rapid loss of the value of the local currency compared to other currencies on the parallel foreign currency market.
The hyperinflation in the country also eroded workers’ salaries thereby triggering prolonged industrial actions.
More: The Sunday Mail