"A survey by The Herald this week revealed a significant drop in demand for
the local unit as very few shops and traders were still selling products in
Zim dollars," the newspaper reported.
The Zimbabwe dollar continues to lose its worth as the country’s chronic
economic woes show no sign of abating. One US dollar is worth four million
Zim dollars at the official exchange rate and three billion Zim dollars on
the black market.
Most traders and service providers from streetside vegetable vendors to
mobile phone service providers are pegging their prices in foreign currency
to hedge against losses.
Since September last year, Zimbabwe’s central bank has licensed at least
1,000 shops to sell goods in foreign currency in a move aimed at helping
businesses suffering from a chronic shortage of foreign currency to import
spare parts and foreign goods.
Others shops and service providers have followed suit although they have not
been authorised by the government and despite warnings that those arrested
for flouting foreign exchange regulations would be prosecuted.
A single journey by minibus within Harare costs one US dollar while hired
taxis charge at the rate of one dollar per kilometre (about half a mile).
In the latest move, the authorities licenced mobile phone service providers
to charge for airtime and other services in foreign currency.
The Herald said the prevalent use of foreign exchange is threatening the
once flourishing parallel foreign exchange market as traders get fewer
people in need of the local currency.
Once a regional economic model, Zimbabwe is in the throes of economic crisis
with inflation officially at 231 million percent and most families unable to
afford a square meal.
A power-sharing deal aimed at reviving the moribund economy and ending
tensions between the country’s main political rivals stalled over the
allocation of key cabinet ministries.
Reuters
Post published in: Economy