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Latwell Nyangu
GOVERNMENT has assured the public that regular monitoring and stakeholder engagement to ensure market-relevant interventions will continue and a number of measures have been put in place to support the formal sector.
Speaking during the Post-Cabinet briefing, Information, Publicity and Broadcasting Services Minister, Dr Jenfan Muswere, said there are no major shortages of basic commodities in the formal retail sector.
“The Ministry of Industry and Commerce conducted surveys of the prices and availability of basic commodities over the period September 27 to 4 October.
“The ZiG prices of basic commodities in the formal retail outlets have increased in response to the adjustment of the local currency.
“However, the prices of the commodities in US$ terms in both the formal and informal outlets have remained stable.”
Dr Muswere said the status of prices and availability of basic commodities follows the Monetary Policy Committee’s bold resolutions on September, 27, in response to the widening gap between the official and parallel exchange rates that caused the surge in ZiG-denominated prices during the period.
“Both the ZiG and US$ prices are still on the higher side in the formal retail outlets, indicating an element of forward or speculative pricing and benchmarking against the parallel market rates.
“Limited stock levels of cooking oil, mealie-meal, bread and sugar were observed in the formal outlets, while the products are readily available in the informal sector.
“This is attributable to arbitrage, as informal retail economic agents seek to capitalise on exchange rate differentials, given the reported cases of hoarding in the formal sector for re-sale to informal outlets.
“It is also evident that most suppliers have reduced supplies to the formal sector and are channelling them to the informal market.
“However, critical to note is the fact that there are no major shortages of basic commodities in the formal retail sector.”
Online Reporter