This has had a negative impact on cross-border traders who now have to fork out billions of dollars in import duty.
“Duty was very low because the rates were being determined according to the official market, which put the US$ at Z$30 000, unlike now, when the rates are above those charged by the street foreign currency traders,” said Methuli Nyathi, an informal trader who sells clothes at a flea market in the city.
Fuel dealers also said that they were now paying as much as Z$12 billion for a 200 litre drum of the precious liquid, unlike in the past when they used to pay 10 times less.
“Informal trade has now been reduced to an impossibility after this move. I used to pay around Z$10 million duty for each DVD I imported from Botswana, but now the amount is above Z$4 billion and that has made my business impossible. I am just thinking about finishing the stock I have before folding up,” said an electrical gadgets dealer in the city on Monday morning.
The RBZ move has also hit consumers harder, as they now have to feel the brunt of traders having to hike prices on a daily basis, using the changing foreign currency rates as their main reason of doing so.
“We are also caught in the same web of the price hikes because we get our goods from other people, who raise the prices daily. To remain in business, we also have to follow suit,” said a shop manager.
At the time of going to print, the RBZ bought US$100 at above Z$21 billion, 100 Pula at Z$3,2 billion and 100 Rands at Z$2,9 billion. These are the most sought after currencies by the informal traders.
Post published in: News