Vendors in the country’s major cities and towns have literally invaded all strategic points, including verandas of big retail shops, selling a variety of goods including basic commodities in foreign currency.
The chaos comes amid speculative reports that the biggest
suppliers for the vendors are retailers that are chasing the United States
dollar, which is readily available on the parallel market.
There are reports that some big retail shops are refusing
to transact in the local currency citing various excuses, including
malfunctioning point-of-sale machines.
President Emmerson Mnangagwa’s spokesperson George Charamba
yesterday described the currency situation as “false chaos” and accused
manufacturers and big retailers of sabotaging government.
“FALSE CHAOS: Behind this seeming chaos is the methodical
BIG HAND OF BIG BUSINESSES!” Charamba said on his Twitter handle where he goes
by the monicker Tinoedza Zvimwe.
“They use forex cheaply got from the auction to retool,
order raw materials, manufacture, and then redirect their output into the
informal sector through their AGENTS. The net result is complete dollarisation
they falsely claim hurts them; and evasion of taxes for the very government
that nourishes them. #ThisMadnessMustBeStoppedNow!” Charamba tweeted.
Consumer Council of Zimbabwe (CCZ) executive director
Rosemary Mpofu confirmed reports of the failing electronic payment system.
“CCZ of late has been receiving consumer complaints from
the transacting public, among them retailers charging some products exclusively
in US$ only, and rejection of the
Zimbabwean dollar, notably mobile transactions either by phone or swipe cards,” Mpofu said.
“At times, consumers are advised that either the mobile
network is poor or lack of connectivity, and non-functioning swipe machines in
a bid to harness as much forex from consumers. We appeal to retailers
practising such unethical practices to desist as such a move impacts on
consumer spending, and limits rights to choice as we are using a dual currency
system. The Zimbabwe dollar remains legal tender, that should not be rejected
until such a time monetary authorities advise so.”
Confederation of Zimbabwe Retailers president Denford
Mutashu said the price hikes were influenced by some unscrupulous
businesspeople in an attempt to sabotage government ahead of the general
elections.
“The unjustified price hikes are uncalled for,” Mutashu
said.
“Some retailers are deliberately withdrawing point-of-sale
machines to reject payments in local currency. Our position is that retailers
should continue accepting the local currency as legal tender. The situation
right now is very normal as we are approaching elections. We have a situation
where business has suddenly rejected the local currency. It’s difficult to
understand the sudden overcharging of goods and services where the parallel
market rate has shot up to US$1: $4 000 against the official exchange rate of
US$1:$1 500.”
Over the weekend, major shops and bars in Harare’s
residential areas were refusing consumers access to the point-of-sale machines.
Some big retail shops were using radio paging systems to
announce electronic system payment failures for customers transacting in the
local currency.
In recent years, Zimbabwe has adopted a dual currency
system, allowing for transactions in both the Zimbabwean dollar and the US
dollar. The growing appetite for the United States dollar in Zimbabwe has raised
concerns among industry leaders.
Mutashu warned that if left unchecked, this insatiable
demand could lead to full-time dollarisation of the economy.
To prevent such an outcome, it is imperative for all
stakeholders to comply with currency laws, promote financial inclusivity, and
protect consumer rights, he said.
A survey by NewsDay yesterday revealed that vendors are now
taking advantage of the situation, buying goods in local currency and reselling
them on the streets in United States dollars.
Other big retail shops reserved a single check out point
for local currency payments, which resulted in long winding queues, which
forced some consumers to give up buying groceries from the shops.
Government has been downplaying the currency chaos saying
it has engaged industry to tame the sky-rocketing prices of basic commodities.
Writing in his weekly column in a State-owned newspaper on
Sunday, Mnangagwa said government had come up with several measures to
stabilise the economy in “good faith”, but was being betrayed by the business
sector.
“We even wonder if at all we are dealing with business
anymore or with the politicians disguised as company executives seeking a
political upset. Equally, politicians seeking to engineer market failures for
definite political outcomes will be dealt with as political opponents and
through rules of appropriate politics,” Mnangagwa said.
The Zimbabwe dollar has been fast losing value, while some
supermarkets are now pricing their goods exclusively in United States dollars to
avoid losses.
Prices in local currency have been changing everyday, with
a loaf of bread which cost $1 800 last week, now selling for $4 000.
Yesterday, the Zimbabwe dollar was trading at $2 059,68 to
the US$ on the official market, while the parallel market rate was US$1: $4
000.
Consumers were in “panic buying” for fear of a repeat of
the 2008 situation, where some goods just disappeared from supermarket shelves.
Newsday
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