“Prices Have Not Changed Since The Introduction Of The Zimbabwe Dollar”

A Zimbabwean researcher, Kenneth Mufuka who is based in the United States has said that prices of commodities have not changed in Zimbabwe since the reintroduction of the Zimbabwe dollar in June last year.

Mufuka claims that the prices have remained the same but the local currency is rapidly losing value against other currencies, particularly the United States dollar. He said:

Prices, I am sorry to say, have not changed since the introduction of the Zimbabwe fake money last June.

I have a list of prices from the United Kingdom. A bag of cement still costs US$8.50 (in Zim: $120), a chicken costs US$5 (Zim: 100), petrol per litre US$1.50 (Zim: 20) and so the charade goes on.

The Zimbabwe dollar was reintroduced through Statutory Instrument 142 of 2019 at a value of 2.5 to US$1.

The rate is, however, above 40 on the parallel market, where foreign currency is accessible, while the interbank rate is now around 18.

This is happening when some economists are urging the government to scrap SI 142 which banned the use of all foreign currencies on domestic transactions.

They argue that redollarising the economy is an effective way of curbing the soaring inflation and boosting production in the country.

More: The Standard

 

Back to top

5 comments on ““Prices Have Not Changed Since The Introduction Of The Zimbabwe Dollar”

  1. Its not an issue of prices not changing. Its an issue of salaries and income not adjusting and savings being eroded

  2. If you are paid in ZWL$ or have no access to United States Dollars, then you are stuffed. That applies to 98% of the population. The other 2% are stealing the available forex.

Write a Comment

Your email address will not be published. Required fields are marked *