Zimdollar hits new low

PHILLIMON MHLANGA / LIVINGSTONE MARUFU Prices of nearly all basic goods skyrocketed this week as the Zimbabwe dollar plunged in value to a record low, leaving disposable incomes dwindled, Business Times can report. The jump in prices comes at a delicate moment for Zimbabwe after annual inflation slowed to 87.6% in March from 92.3% in February this year. This has been a major blow mainly to millions employed in the civil service who have had their recent paltry pay rise affected leaving their situation dire and now demanding more from the government. As the local currency continues to lose value against all major currencies, at the auction system, the Zimbabwe dollar this week plunged to ZWL$944.71:US$1 from ZWL$671: US$1 in January this year. On the parallel market the Zimbabwe dollar was this week trading at between ZWL$1 600:US$1 and ZWL$1 700:US$1. The spike in prices comes as Zimbabwe heads to the polls, possibly in August, which could force authorities to intervene, with disastrous consequences. A survey by Business Times this week shows that the cost of a 2-litre bottle of cooking oil had risen to ZWL$4 749.99 from ZWL$3649.99 last week while bread was this week selling at ZWL$1 399.99 from ZWL$989. A 2 litre Mazoe drink is now selling at ZWL$4 149.99 from ZWL$3 600 last week. A 10kg roller meal is selling at between ZWL$6 999.99 and ZWL$8 999.99 from ZWL$5899.99 last week. A 2kg pack of rice and a bar of soap are now selling at between ZWL$2199.99 and ZWL$3899.99 and ZWL$1349.99 from ZWL$1 600.99 and ZWL$984.99 respectively. A kg of beef jumped to ZWL$6 899.99 from ZWL$4132.99 last week while a kg of chicken has soared to ZWL$6 499.99 from ZWL$4189.99. In an interview with Business Times yesterday, the Consumer Council of Zimbabwe executive director Rosemary Mpofu said the situation was adversely impacting on consumers as prices have gone up in both ZWL$ and US$. “The cost of living as measured by the CCZ’s low-income urban earner monthly basket for a family of six increased ZWL$489 831 by end of March from a figure of ZWL$441 036 by the end of February, showing an increase of ZWL$48 795. “The reasons for the increase varied from localised high inflationary pressures, exchange rate volatility, and external factors. Even with smaller denominated gold coins, trying to curb inflation amid a slump in the country’s currency, we still noticed a huge change in prices,” Mpofu said. She added: “We see a lot of activity on the parallel market exchange rate which was a major factor in driving inflation. In terms of the US$ basket, we also noticed a huge change as the basket moved to US$478.82 from US$507.67. This was a huge increase and it is not good for the consumers,” she said. Going forward, the government should come up with policies that support production. “The manufacturing sector should be capacitated to increase production in the factories. This will reduce the cost of production and create a lot of jobs for the locals. “The authorities should implement activities that support production.” The Zimbabwe National Chamber of Commerce president Mike Kamungeremu said rolling power cuts are exacerbating the situation. “We are running generators everyday and the costs are very high, leaving us with no option but to pass on the costs to the consumers. This is the only way we can survive, otherwise, some businesses will close shop if they don’t adapt,” Kamungeremu said.

Cookie	Duration	Description
cookielawinfo-checkbox-analytics	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional	11 months	The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy	11 months	The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.

Zimdollar hits new low

…prices skyrocket …civil servants severely hit

Subscription Required

Related

Concern over rising cases of GBV

MPs fret over PSMAS rot

Harvesting from an unlikely source

ZACC probes Harare over US$200m deal

ED hands Mutinhiri diplomatic post

Munetsi’s Wolves stay in doubt

Subscription Required

Related

Ex-farmers reject govt deal

Egypt’s President Sisi lauds AfDB for supporting Africa navigate global challenges

Related Articles

RBZ closes in on IMF conditions

ZWG2.6bn block trade rattles market

RBZ holds firm on tight monetary policy

Govt pumps ZWG75bn into economy