Illegal black market at it again . . . hoarding of Proton bread rampant

Talent Gore

MEMBERS of the public have started feeling the pinch of machinations orchestrated by illegal foreign currency dealers in supermarkets and pharmacies.

Some pharmacies in and around Harare are now discouraging the use of ZiG and demanding a higher percentage of any payment in US dollars.

There has also been an increase in US$ prices in most pharmacies to address the gap between the official rate and that obtaining on the illegal black market.

Elsewhere, individuals are raiding major supermarkets for the popular white Proton bread, which sells for ZiG 15.30 in the shops and taking it to tuckshops where it costs US$1 while they do not take the local currency.

A survey conducted by this publication revealed that most pharmaceutical outlets were only accepting a maximum of 40 percent of payment in ZiG and 60 percent in USD or 100 percent USD.

The same is also obtaining in many meat outlets where they put a cap on the ZiG amount one can spend while the USD is uncapped.

There are also growing reports of most butcheries claiming that their ZiG swipe machines are out of service.

The emerging trend undermines the Government’s efforts to stabilise the currency and maintain its utility, further diminishing consumer purchasing power and contributing to economic instability.

Confederation of Zimbabwe Retailers (CZR) president Denford Mutashu said the exchange rate and currency environment continue to impact negatively on doing business for formal businesses who religiously apply official exchange rate when pricing.

“Some companies have reclined into a survival mode to preserve the value of their investments as a gap between official and unofficial exchange rates widens,” he said.

“The supply chain remains largely dollarised while retailers and wholesalers are forced to sell in ZiG and at the official exchange rate.”

Mutashu said CZR advises sector players to comply with the exchange rate laws while we continue engagements with the Government to improve the environment for a win-win situation.

“ZiG is legal tender, just like the US dollar hence retailers should comply with the law and accept local currency,” he said.

“As CZR, we continue to urge retailers and wholesalers to accept ZiG and not inconvenience customers as we continue to work with the Government in addressing the supply chain challenges impacting sector players negatively.”