adminTHE Beverage Wholesalers and Retailers Association of Zimbabwe (BWRZ) and consumers have said they were waiting with anticipation for the “special coins” that the Reserve Bank of Zimbabwe (RBZ) intents to introduce before year end.
Last week RBZ Governor Dr John Mangudya said plans were under way to introduce a new regime of “special coins” indexed at par with the United States coins by December.
The coins, which are being imported, will be introduced as a medium of exchange and are aimed at augmenting currencies in circulation especially in change.
In an interview with Sunday Business last week BWRZ president Mr Isaac Kanjera said the introduction of coins was long overdue and would go a long way in removing price distortions in the country’s economy.
“It’s a brilliant idea if they bring those coins. The shortage of coins was affecting the pricing policy where the retailers especially at the beverages sides were forced to change the prices. You would find something which is supposed cost 75 cents would be pegged at $1 as to circumvent challenges of small change,” said Mr Kanjera who is also a banker.
He said the shortage of coins was affecting the consumers as they were forced to change their buying patterns.
“Due to the shortage of coins, sometimes retailers give consumers goods that they do not intend to buy such as sweets,” said the official.
Mr Kanjera said most producers were repacking their products so that they could be priced a particular price to avoid small change challenges.
An economist, Mr Prosper Chitambara, also echoed the same sentiments and said plans to introduce coins were noble.
“It is a good idea that is going to improve on convenience to both customer and the sellers. It is also reduce the transaction costs. The introduction of these coins is also going to bring confidence into the economy,” said Mr Chitambara.
He, however, said it was not going to bring any structural changes to the challenges affecting the economy.
Mr Chitambara also said the introduction of the special coins would not affect inflation.
“The coins are not going to have an effect on inflation and if they do, it will be very minimal,” said Mr Chitambara.
Consumers in Bulawayo said coins were going to give them a huge sigh of relief.
“We want those coins to be made available as soon as possible because shops are shortchanging us. Instead of giving your change they give something else,” said Miss Angela Masuku from Tshabalala.
Zimbabwe adopted the use of the US dollar and other regional currencies in February 2009.
In his monetary policy statement announced last week, RBZ Governor Dr Mangudya said the “special coins” denominations would range from one cent to 50 cents.
The country is battling a liquidity crisis and small change challenges and is importing rand coins of 10c, 20c, 50c, R1,R2 and R5 in the multiple currency system which is dominated by the US dollar.
The coin shortage has been a huge challenge in most parts of the country although Bulawayo has been less affected due to its proximity to South Africa and Botswana where the coins are coming from.
At one time in 2012, bankers imported several million rand worth of coins from South Africa but were re-exported after bankers failed to agree on an uptake rate with retailers.
Online Reporter