CONSUMERS have reacted with anger to the extortionate and unrealistic exchange rate levels being applied in the pricing of basic goods in local currency by some unscrupulous retail players in the country.
In a demonstration of sheer greed, one retail chain, Basic
Supermarkets in Bulawayo, had by yesterday pegged its exchange rate at an
incredible rate of US$1: $5 500, almost four times the official figure of $1
404.
Angry shoppers said shop attendants at one of the
retailers’ branches in Lobengula Extension were telling them that management
said the motto was, ‘ongafuniyo kayekele’ (if you can’t, leave it).
A shop attendant who will not be named for fear of
victimisation said they were instructed by the employer to harness as much
foreign currency as possible, hence the stance to peg exorbitant exchange rate
figures, way above what most shops or even informal market traders were
charging.
The decision is ostensibly meant to discourage the use of
the local dollar, which is legal tender, by arm-twisting customers to transact
with forex only.
“Our rate is $5 500 today and please note this is for
today, we are not sure what it will be tomorrow,” said the attendant.
A survey around Harare and Bulawayo central business
districts, also established that the exchange rate at retail shops varied between
US$1: $1 700 and US$1: $3 200.
In Bulawayo, Oceans Supermarket was using a rate of US$1:$3
000 while Greens Supermarket had a rate of US$1:$2 600, which is what most shops were using, although a shop along Five
Street opposite Highlanders clubhouse had pegged their rate at US$1: $2 700.
However, at OK Zimbabwe and Pick and Pay shops in both
cities, the rate was in line with the official rate of 1:1 404.
“We are governed by the Government position, meaning we are
using the official bank rate, which also allows us to add the legal 10 percent
rate difference,” said a manager in one of the retail giant’s shops in
Bulawayo.
Residents have since appealed to the Government to act and
bring the situation under control, noting that some retailers were clearly on
an extortionist overdrive, which frustrates the entire economy.
“The situation is now beyond redemption, these shops are
clearly ripping off citizens. Something must give in,” said an irate Bulawayo
resident, Mr Hawulani Sibanda.
“I think it’s high time the Government stamped its
authority by reining in such shops. I am a pensioner earning a paltry pension,
where do I get this kind of money that these shops are charging? Honestly a
dollar costing $5 500, how is this allowed? The law must take its course.”
Another shopper who refused to be named said when she
raised her concerns to the shop attendants on their exorbitant rate, which she
said was $4 800 to the dollar on Saturday, only to balloon to $5 500 yesterday,
she was actually told to take it or leave it.
“This is madness at its worst, are we a lawless country?
Government must stop this madness,” she said.
Another resident from Tshabalala, Ms Ethumetse Ndlovu said
the solution probably lies in the Government adopting a one-currency system.
“I think it’s now time that we have a one currency system
like other countries because as long as we have more than one currency, this
madness will always be with us,” she said.
“Rates are going up every day and people like us who are
vendors can’t cope anymore, I can’t even afford to pay rent and school fees at
the same time,” said Ms Ndlovu.
In his weekly column carried by our sister publications,
Sunday News and Sunday Mail, President Mnangagwa also expressed his
disappointment at the abuse of the Government’s benevolence to allow go against
internationally set standards of making it mandatory for businesses to remit
their foreign currency earnings to the Central Bank.
“Let me remind our business of a few facts, some echoed in
all jurisdictions globally. At law and by worldwide practice, all foreign
currency earnings should be surrendered to Government, through the Central
Bank, as obtained worldwide,” he wrote.
“Worldwide, businesses access foreign currency for their
needs from Central Bank, through cumbersome processes and on the basis of
market conditions. Here we have waived that position at law and in general
practice worldwide, hoping to prop our business sector and for ease of doing
business. This act of magnanimity now looks underserved,” said President
Mnangagwa.
He said Zimbabwe was a multicurrency economy after a
deliberate Government decision but the position was now being contradicted by
business.
“Any business practice, which suppresses the use of any one
currency recognized by our laws are both illegal and do undermine this unique
and most favourable position, which is found nowhere else in the world. The
offense gets worse when these illegal practices seek to outlaw the use of the
local currency unit, itself our national currency and currency of wage
earnings,” warned President Mnangagwa.
Last week Government announced that it will be conducting
evidence-based research within seven days with the ultimate goal of ensuring
that consumers continue to access basic commodities at affordable prices.
The research, to be carried out by the Ministry of Industry and Commerce will be
conducted in collaboration with the National Competitiveness Commission,
Competition and Tariff Commission and the Consumer Protection Commission, and
all other relevant stakeholders.
The Minister of Information, Publicity, and Broadcasting
Services, Senator Monica Mutsvangwa, while presenting her post-Cabinet meeting
report, said Government noted that consumers are being forced to buy goods that
they don’t need in formal retail outlets when they pay using USD so that they
may offset the change balance.
This is because the retail outlets, said Sen Mutsvangwa,
are refusing to mix USD and Z$ transactions.
She said from the survey undertaken, most basic commodities
are generally available both in formal and informal retail shops, although
there are artificial shortages observed of some locally produced goods,
especially in formal retail shops, adding that prices in the formal retail
sector are relatively high in both USD and ZWL terms when compared to the
informal retail sector and are thus indicative of speculative and forward
pricing. Herald
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