Some Businesses Reject Zimbabwe Dollar

9 months agoFri, 28 Apr 2023 05:51:46 GMT
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Some Businesses Reject Zimbabwe Dollar

Some retailers are reportedly refusing payment in the local currency or limiting the number of items people can buy in Zimbabwe dollars, which they say has become very unstable.

The Zimbabwe dollar was reintroduced in 2019 after a decade of the multicurrency system but it has been depreciating alarmingly.

On the parallel market, the Zim dollar is trading between $2 100 and $2 200 to the greenback, and US$1 036 on the official market.

Some retailers in Harare are reportedly limiting the number of items one can buy using Zimdollars.

The products include cooking oil, meat, mealie-meal, rice and beverages. Some shops are selling the products exclusively in US dollars.

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An official at one of the country’s leading meat suppliers who spoke to NewsDay on Thursday on condition of anonymity said:

There are some businesses trying to take advantage of the fact that we are selling in local currency to come to dump their Zimdollar stock and then sell the meat or merchandise they buy from us in US dollars.

This has become prevalent, so to dissuade this practice we are limiting stocks on certain products.

Finance and Economic Development Deputy Minister Clemence Chiduwa told NewsDay that the Financial Intelligence Unit (FIU) was monitoring developments in the retail sector. He said:

We are getting reports that some supermarkets are demanding payment for certain products exclusively in US dollars.

The Bank Use and Promotion Act applies the same way as trading in the parallel market.

This is illegal and all operators are urged to abide by the laws. We are closely monitoring the market delinquency and deviance which is a violation of the law.

The FIU is taking appropriate action against those who are exclusively accepting USD on certain products.

The continued depreciation of the Zimdollar is due to inflationary expectations mainly driven by parallel market rates.

The resultant instability due to chasing rates is negatively affecting all of us.

Market players should focus on production and the generation of forex.

Meanwhile, Delta Beverages spokesperson Patricia Murambinda, told NewsDay the company was not responsible for the actions by retailers in charging its products exclusively in US dollars.

More: Pindula News



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