Oct 19, 2021

Mawazo Writing Africa

Writing about the main

Zimbabwe dollar risks collapse, warns business lobby

Zimbabwe’s top industrialists have warned that the country’s currency is about to collapse as companies resort to US dollar transactions.

Authorities have arrested numerous foreign traders in recent weeks on charges Having manipulated the volatile Zimbabwean dollar by trading on the black market.

On the streets, the currency changes hands for up to Z $ 200 per US dollar, while the official rate is set at Z $ 90 is.

In a letter to its members, the Confederation of Zimbabwe Industries (CZI) – the largest local business community, she said it had warned the government against taking action against companies and traders / p>

“The biggest risk to the economy right now is an inadequate political reaction to rising parallel market premiums,” said CZI of the growing gap between official and black market currency values.

“Limiting the info Normal stock market trading in the absence of a viable formal market will have disastrous consequences for the economy. “

Regaining confidence in the foreign exchange markets.”

The government of President Emmerson Mnangagwa is fighting to prevent another collapse of the Stop the Zimbabwean dollar, which was only revived in 2019, two years after the overthrow of longtime ruler Robert Mugabe a year earlier.

The national currency has been reintroduced on an equal footing with the US dollar, but has been in the last few months due to a runaway parallel currency market and a shortage of locally produced goods.

Finance Minister Mthuli Ncube said the government is now starting to penalize companies and companies that parallel the pricing of goods and services Market rates taken into account.

“Companies that disobey the law and continue to price their goods on the P Parallel market rates are suspended on their licenses, ”Professor Ncub said in a recommendation published on Thursday.

Troubled local businesses resort to discounts for those who can pay in US dollars to get foreign exchange for the Procuring conversion.

The country has used a dual pricing system since last year, allowing companies to sell goods and services in US dollars at the official exchange rate and the local currency.