Local businesses, mainly manufacturers and retailers are reportedly rejecting the local currency demanding the United States dollar.
Businesses are citing the local currency’s rapid and continuous loss of value against other currencies particularly the United States dollar.
Commenting on the development, Confederation of Retailers of Zimbabwe (CZR) president Denford Mutashu, said the growing gap between the exchange rates for RTGS dollars and cash has been putting unrelenting pressures on commodity prices. He said:
It (rejection of RTGS dollars) is an issue that we have picked in the market. A number of suppliers and manufacturers have opted to deal only in cash and hard currency and the concerns are around the instability of the local currency.
The manner in which the local currency is shedding value reminds of the 2008 era when the country’s inflation reached a record-high 231 million percent resulting in the country ditching the original Zimbabwe dollar.
Since the reintroduction of the Zimbabwe dollar in February last year at an exchange rate of $2,5 to the US dollar, the local currency’s electronic version has plunged to about $76 against the greenback on the black market.
More: The Herald