Chronicle Editor
FINANCE and Economic Development Minister Professor Mthuli Ncube on Saturday had first-hand information on what is obtaining in the market as a result of the local currency’s volatility caused by forex dealers and unscrupulous businesses hiking prices.
Most businesses have adopted speculative pricing as they chase the parallel market exchange rates and as such are now charging exorbitant prices for goods and services.
The prices are now beyond the reach of many consumers and what is disturbing is that retailers are increasing prices even for those buying using the United States dollar.
The prices are being adjusted daily as businesses chase the black market exchange rates and in most cases prices have more than doubled what they were two weeks ago.
Speaking after a tour of retail shops and interacting with members of the public in Bulawayo on Saturday, Prof Ncube said Government will this week announce measures to strengthen the local currency.
He assured the market that the Zimbabwean dollar remains the country’s lawful currency and deliberate measures are being taken to strengthen its value.
Minister Ncube said the use of the local currency had impacted positively on the economy as evidenced by the revival of a number of companies and the increase in productivity.
He said the use of local currency had improved the competitiveness of goods produced by local companies hence the need to continue using it as opposed to dollarisation.
Workers’ salaries have been eroded as many of them are being forced to buy forex on the black market as a result of businesses that are selling their goods in forex only.
Minister Ncube has warned that such businesses risk having their trading licences withdrawn.
The Reserve Bank of Zimbabwe’s Financial Intelligence Unit (FIU) has also said that it is taking action against companies refusing local currency and those trading using the parallel market rates.
On 24 May FIU froze bank accounts of Saxin Trading, Simrac Enterprises, Brainscope Investments and Munella Enterprises for diverting commodities to the black market and transacting exclusively in forex while not banking the cash.
The errant distributors were also refusing to supply goods to established retailers who pay for and sell goods in local currency.
Government has in the past been accused of making empty threats hence businesses were defying its directives with impunity.
It is time Government comes up with stiff penalties against unscrupulous businesses that are after fleecing consumers.
Government has threatened to withdraw trading licences of defiant businesses and consumers are looking forward to such withdrawals in order to send a loud and clear message that unethical businesses have no place in Zimbabwe.
Consumers are suffering yet Minister Ncube is saying there have not been any changes in the economic fundamentals to warrant the price hikes being witnessed in the market.
There is therefore an urgent need to restore sanity in the market place by weeding out all unscrupulous elements that want to reverse our economic gains. This price hike madness must be stopped immediately.
Online Reporter