SOME errant businesses in Bulawayo continue to quote their
prices in foreign currency sabotaging the monetary reforms Government is
implementing as part of efforts to turn around the economy.
Through Statutory Instrument 142 of 2019, the Government in
June outlawed the use of the multi-currency system which the country adopted in
February 2009 after inflation had reached exponential levels.
To buttress SI 142/2019, the Government last September
promulgated SI 212/2019 to stop unscrupulous businesses from quoting, charging
and accepting payments in United States dollars or any kind of foreign
currency.
However, a snap survey carried out by Business Chronicle in
the Central Business District (CBD) of Bulawayo last week, revealed that some
errant businesses in the formal and informal sectors were still quoting their
prices in hard currency.
Shop attendants who refused to be named citing professional
reasons, told this paper that they were charging in forex to preserve value of
their working capital.
“We sell our
products in foreign currency because where we order them, they are priced in
foreign currency or local currency at the prevailing parallel market rate.
“But chances are high that when you sell products in local
currency, restocking is likely to be a challenge because the currency is not
stable,” said the shop attendant whose outlet is located between 8th and 9th
Avenues along Fife Street.
It has also emerged that players in the properties market
were demanding rentals for commercial properties in hard currency, a situation
which was compelling the tenants to also quote their prices in forex.
An entrepreneur who owns a fast food outlet situated along
Fife Street said the rentals for her business were pegged in US dollars.
“Now my rentals are in US dollars, which situation also
compels me to charge in foreign currency to make sure that I meet my monthly
rental obligations as well as preserve value for working capital to allow
continuity of my business,” said the entrepreneur.
In Bulawayo bars and night clubs charge their prices in
foreign currency or in local currency equivalent to the quoted forex price of
the beverages.
For instance, most bars in the city centre sell a quart of
beer from a price ranging between US$1 and US$2.
Some players in the informal sector such as fruit and
vegetable vendors were also quoting their prices in foreign currency.
For example, a banana was being sold at 2 rand or the
equivalent in local currency.
Analysts have pointed out that transacting in foreign
currency by local businesses was retarding Government’s efforts in restoring
confidence within the financial services market while also destabilising the
monetary system. Chronicle
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