The Confederation of Zimbabwe Retailers fully embraces the introduction of our own currency, the Zimbabwean dollar (Zimdollar$) by the Minister of Finance Professor Mthuli Ncube and the support measures to stabilise the interbank foreign currency market by the Governor of the Reserve Bank Dr John P Mangudya through SI142 of 2019.
This comes as President Emmerson Mnangagwa recently announced the impending introduction as the market was already warming up to that reality .
The pricing distortions arising from the inflated and stage managed parallel market had left most Zimbabweans reeling and on the brink of total poverty as incomes ,wages and salaries were eroded daily by the fictitious and fallacious black market exchange rate.
The dilemma was exacerbated by the demand for USD$ for domestic transactions even for goods ordinarily manufactured in Zimbabwe yet about 96% of the workforce earn their wages and salaries in local currency. Many had to offload the RTGS$ or Bond Notes as soon as they laid their hands on it.
The country has got to move on and embrace it’s own currency and have independence in monetary policy formulation and implementation with the RBZ playing the lender of last resort role in sync with the ongoing fiscal policy reforms.
Retailers and Wholesalers are urged to changeover forthwith and immediately abandon selling goods and services in USD$ or any foreign currency as it has been outlawed . Non-compliance will attract unnecessary and unwanted attention to one’s brand by authorities.
In pursuit of full compliance, the CZR urges manufacturers, millers , bakers, all suppliers and manufacturers and other service providers to comply with the law and stop forthwith demanding payment for goods and services from retailers, wholesalers and traders in foreign currency.
The CZR further urges the RBZ to exercise restraint and prudence with the printing machine to safeguard the value of the Zimdollar while the Min of Finance should desist from inconsistent policy pronouncements that has dented trust and confidence in the past . Further measures should be a product of continued consultations and engagement while the inclusive approach is encouraged forthwith .
The introduction of the Zimdollar will further improve competetiveness and effort should be made to ensure importation of essential raw materials, capital goods , drugs and medicines, fuel , energy and power , is not impeded or hamstrung by policy change over.
The interbank should be fully operationalised and ensure companies that have to import, only out of necessity, will receive maxim support.
The government should move in to act on the forex parallel market and arrest not only the street boys as lip service but the financiers of that market . It’s easy as all these tracks sections are electronic one way or the other.
It is also critical to tame the rapid rise of informalization of the economy to eliminate distortions and the long arm of the law should also be capacitated to deal with the impending non-compliance in this sector .
There is need to quickly work on confidence building measures around the new currency and also deal with the political side of the economy by putting national interests ahead of our own personal aggrandisement , egos and gains/benefits. Zimbabwe first .
The Confederation of Zimbabwe Retailers will continue to make government accountable, promote transparency while interrogating policy measures without fear or favor .
The CZR expects politically , economically connected to stay away from the Zimdollar as this will create more cartels and corruption which will have a negative effect of dampening its value and confidence around it.
The business sector who have been reportedly removing goods from shelves are warned to desist from such malicious malpractice and comply with the law.
Confederation of Zimbabwe Retailers
President
Denford Mutashu