RETAILERS have defied President Emmerson Mnangagwa’s directive to adhere to the official interbank rate when pricing goods.
On Saturday, Mnangagwa announced a raft of measures aimed
at controlling the spiralling inflation, which included a directive to
retailers to stick to the official interbank rate of $280 to avoid price
distortions.
The United States dollar is trading at $165,9 against the
local currency at the official foreign auction system, but is going for around
$280 at the interbank rate and $400 on the black market.
Mnangagwa said: “The willing-buyer willing-seller interbank
foreign currency arrangement has assisted in the price discovery mechanisms of
the exchange rate in the economy. In this regard, retailers and wholesalers
are, with immediate effect, allowed to benchmark their pricing to the average
interbank rate with a maximum allowable variance of 10%. The security agents of
government and the Financial Intelligence Unit shall with immediate effect
enhance their roles to effectively monitor financial transactions in order to
address the delinquent arbitrage behaviour in the economy.”
However, a snap survey conducted by NewsDay yesterday
revealed that most retailers had adopted the black market rates of between $350
and $400 in pricing goods and services, totally disregarding Mnangagwa’s
directive.
For instance, bread which is pegged at $450 a loaf was
being alternatively charged between US$1 and US$1,40, which is way above the
interbank exchange rate. Cooking oil was pegged at around $1 600 for 2 litres,
but a consumer could pay US$4 showing a 1:400 exchange rate to the dollar.
Some retailers described the inflated exchange rate as US
dollar discounts whereby customers are charged less for paying using the US
dollar to boost foreign currency sales.
In interviews with the NewsDay, retailers said the official
auction and interbank rates were not sustainable because they could not meet
the costs of running their businesses if they adhered to the official exchange
rates.
It is very unprofitable to continue using the official
exchange rate,” said one retailer who spoke on condition of anonymity.
“The interbank and auction rates are always lower than the
parallel market rate. If we stick to the interbank rate, consumers who want to
spend the US dollar will first go to the black market and sell their money at a
higher rate, then come and use the local currency. We will not be able to get
foreign currency, which is, however, very important for us to get supplies of
some goods and services,” he added.
Economist Trust Chikohora said: “The measures that were introduced by the
President are commendable, but one wonders how the auction rate will be
determined. There is need for a currency indaba to deliberate on the measures
that have been put in place so that we come up with holistic and sustainable
solutions to address the currency crisis. There is need to share ideas on
currency issues, which has a direct bearing to the pricing situation, the
prevailing inflationary situation and economic growth.” Newsday
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