Members of the public are beginning to feel the impact of actions by illegal foreign currency dealers in supermarkets and pharmacies.
Some pharmacies in and around Harare are now discouraging payments using ZiG, preferring a larger portion of transactions to be made in US dollars. Additionally, many pharmacies have increased their US dollar prices to bridge the gap between the official exchange rate and the rate on the illegal black market.
In other instances, individuals are purchasing the popular white Proton bread from major supermarkets, where it costs ZiG 15.30, and reselling it at tuckshops for US$1, where local currency is not accepted.
A survey by this publication found that most pharmacies are limiting the acceptance of ZiG to a maximum of 40 percent of any transaction, requiring the remaining 60 percent or full payment in US dollars. Similarly, many meat outlets are imposing caps on the amount of ZiG customers can use, while allowing unlimited payments in USD. There are also increasing reports of butcheries claiming their ZiG swipe machines are out of service.
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These practices undermine the government’s efforts to stabilize the currency and maintain its value, further reducing consumer purchasing power and contributing to economic instability.
Denford Mutashu, president of the Confederation of Zimbabwe Retailers (CZR), noted that the current exchange rate and currency environment are negatively impacting formal businesses that adhere to the official exchange rate when pricing their goods.
“Some companies have shifted into survival mode to protect the value of their investments as the gap between official and unofficial exchange rates widens,” he said. “The supply chain remains heavily dollarised, forcing retailers and wholesalers to sell in ZiG at the official exchange rate.”
Mutashu urged businesses to comply with exchange rate laws while CZR continues discussions with the government to create a more favorable environment.
“ZiG is legal tender, just like the US dollar, so retailers should adhere to the law and accept local currency,” he emphasized. “CZR continues to encourage retailers and wholesalers to accept ZiG and avoid inconveniencing customers as we work with the government to address the supply chain challenges affecting the sector.”
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