Speaking to 263Chat, Zimbabwe Cross-border Traders Association (ZCBTA) chairperson Killer Zivhu said the recent government move to lift an earlier ban on importation of basic commodities will have a negative impact.
He said the new measure will result in a rise in parallel foreign currency rates and prices since everyone will be able to import goods on their own. Zivhu said in the long term the measure will have more catastrophic disadvantages than advantages to the economy. Said Zivhu:
As cross border traders, we feel that there are more measures that should be taken in order to avoid the flooding of goods because now if it is a 50/50 situation, there is going to be an increase and the demand of Forex is going to be high hence. The rates are going to increase anytime from now since everyone wants to go out to buy things on their own and the prices are going to increase because no-one will want to trade in bond notes after getting money on the streets. So whoever is going to do business will be demanding forex and that is going to affect the majority who are getting their salaries in bond notes or transfers.
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Bond Notes are a currency of notes backed by a bond that the Zimbabwe government announced on 4 May 2016 by Reserve Bank of Zimbabwe (RBZ) governor John Mangudya. The $2 denomination of the notes was finally introduced on 28 November 2016. More notes were... Read More About Bond Notes