Following the introduction of the multi-currency system in 2009, service providers and business people in Matabeleland region have been rating the rand at R6, 50 to the US dollar, making goods and services very expensive compared to other regions where the rand is trading at $10.
With the US dollar now trading at R9, 59 on international markets, the residents say the development will make life cheaper for them. “I am happy that the US dollar is now firming against the rand. The rand had made our life here unbearable. Most shops and service providers are pricing their goods and services in Rands at ridiculous exchange rates. These people have been short-changing consumers for a very long time,” said Timothy Moyo, a student at the National University of Science and Technology.
A vegetable vendor, Pauline Shumba, welcomed the development saying the currency distortion was hurting her business. “This distortion in the exchange rate has been affecting our business big time. At times we were forced to buy our products in rand at high prices and resell in US dollars at low cost. To make things easier for everyone the rand should simply trade at $1 dollar to R10,” said Shumba.
Goliath Nyathi also welcomed the depreciation of the rand. “Everyone has been using these disparities in currency to their own advantages at the expense of ordinary people.
Government should fix one exchange rate that everyone should work one. Things in places like Harare have been cheaper because they have using the dollar more than the rand,” he said.
Some business people who also spoke to The Zimbabwean said the rand’s free fall was affecting their businesses.
Post published in: Business