The Sunday Mail
Tendai Chara
ALTHOUGH most formal business enterprises have taken heed of the Government’s call to abolish the use of multi-currencies for local transactions, some bad apples are still on the prowl, as they have either ridiculously increased the prices of their goods or are clandestinely demanding payment in foreign currency.
By mid-week, as the economy was adjusting to the Government’s announcement that the economy had moved from a multi-currency regime to a mono-currency one, most retailers instantly adjusted and started trading in RTGS dollars.
Through Statutory Instrument 142 of 2019, Government outlawed the use of multiple currencies through new regulations that compel all forms of transacting to be done in local currency, now formally known as Zimbabwe dollar.
However, some retailers, especially fast-food outlets, pegged their prices at ridiculously high levels, even beyond the parallel market exchange rate.
When Government announced the shift to mono currency, parallel market rates were hovering between US$1 to RTGS$11.5 and US$1:RTGS$13. However, by Friday the rate had plummeted to US$1:RTGS$8.
Consequently, fast food outlets, although moving in tandem with the Government’s directive to trade in RTGS dollars, pegged their prices at incredulous levels. One outlet almost broke down the internet as an order for pizza was pegged at $306.
But to their credit, most of the mainstream supermarkets switched to the RTGS dollar and did not raise prices.
One popular wholesaler in downtown Harare was using the exchange rate of US$1:RTGS$10 in pegging its prices.
For instance, before the Government announcement, their cement was trading at US$9,30 by mid-week, they were now selling it for RTGS$93 per bag.
However, after making sure that we were not law enforcement agents, the shop workers said a bag of cement could be bought for US$10.
A snap survey conducted on Thursday by The Sunday Mail Society in downtown Harare revealed that whilst mainstream shops have adopted the mono-currency, the small shops, most of which are individually owned, are still charging in US dollars.
However, some traders in the informal sector, particularly tuckshop owners in downtown Harare, who were notorious for demanding payment in forex, have also complied with the Government directive.
“This is a Government directive that we have to adhere to. I am yet to see the negative effects of this directive. As you can see, it is business as usual,” said a tuckshop owner, who requested to be anonymous.
A majority of the shoppers this publication spoke to welcomed the directive and called on law enforcement agents to weed out the businesses that are still pegging their goods and services in foreign currency.
“In my case, my salary is not pegged in foreign currency. The directive to ban the use of foreign currency protects vulnerable people like me,” said Mr John Chasokela.
Tellingly, street money-changers, who have been at the forefront of pushing the exchange rate on the parallel market, faced a subdued market during the course of the week as rates plummeted. Business was evidently low.
“The exchange rate is around 1:8 but no one is selling at that rate. The only transaction that I have done today, I managed to sell at 1:6,” lamented one money-changer.
Some pharmacies, which have been profiteering through charging obnoxiously high prices in US dollars, have withdrawn essential drugs and are secretly demanding payment in United States dollars, dispensing only to bona fide customers.
