Denford Mutashu

New Currency: Industry calls for adequate policies to avoid shortages  

Industry has called for adequate policies to support the changes effected by the new currency regulations to avoid shortages of goods in the supermarkets.

Mona Lisa Dube

The Confederation of Zimbabwe Retailers president, Denford Mutashu, also says traders should comply with the new developments.

“We urge traders to comply. We also urge the government to have efficient implementations in terms of the currency change over because we do not wish to see any negative impact as far as shortages of goods and services (is concerned) as well as diversion of goods on to the parallel market,” he said.

There has been speculation that the latest development may lead to shortages of products.

“The rate is potentially going to come down and then that will be the formal rate which will be then used to bench mark the prices that will be used in the economy. In the interim we expect the stabilization of prices,” he said.

Confederation of Zimbabwe Industries president, Henry Ruzvidzo says there are hoping this will increase foreign currency on the interbank market.

“The Statutory Instrument Represents a major shift which will have far reaching implications in the economy,” he said.

“What is critical though is access to the foreign currency when needed. The support measure announced by the Reserve Bank Zimbabwe are a necessary step to support the formal market of foreign currency.”

“Our hope is that these measures will direct resources towards production which is critical for a sustainable exchange rate regime and contain inflation,” he added.

The Ministry of Finance and Economic Development gazetted Statutory Instrument 142 of 2019 which makes the Zimbabwean dollar the sole currency for legal tender processes.

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