By Business Reporter- Retailers have abandoned the Zimbabwean dollar and are tagging prices in the United States dollar as the local economy continues to deteriorate.

Major retailers such as OK Zimbabwe, TM Supermarkets, and Spar have begun pricing their goods exclusively in US dollars, marking a significant shift away from the Zimbabwean dollar.

The decision to discard Zimbabwean dollars comes amidst a steep decline in the currency’s value, rendering it practically worthless.

On Friday, prominent retailers, including OK Zimbabwe, TM Supermarkets, and Spar, took down price tags denominated in Zimbabwean dollars, citing the currency’s rapid depreciation.

Denford Mutashu, president of the Confederation of Zimbabwe Retailers, told VOA’s Studio 7 on Friday that continuing to operate with the Zimbabwean dollar would hinder their ability to restock inventory.

The move reflects the growing lack of confidence in the local currency’s stability and purchasing power.

Recent data from the Zimbabwe National Statistics Agency (ZIMSTAT) underscores the severity of the economic crisis.

In March, annual inflation surged to 55.3%, marking a seven-month high compared to February’s 47.6%. Furthermore, prices escalated by 4.9% within the month, a slight decrease from the previous month’s 5.4% increase.

The relentless depreciation of the Zimbabwean dollar against the US dollar has exacerbated inflationary pressures, contributing to the erosion of consumer purchasing power.

The Zimbabwean dollar has depreciated against the US dollar consistently throughout the year, experiencing a staggering 72% decline.

This alarming trend has positioned the Zimbabwean dollar as the world’s second-worst-performing currency, trailing only behind the Lebanese pound.

Despite mounting evidence of the Zimbabwean dollar’s failure, the government persists in its rhetoric of stabilising the currency.

However, the persistent depreciation and widespread adoption of the US dollar by retailers underscore the urgency of addressing the underlying economic challenges facing Zimbabwe.

The decision by major retailers in Zimbabwe to transition exclusively to US dollar pricing signals a profound loss of faith in the local currency amidst escalating economic turmoil.

As inflation continues to soar and the Zimbabwean dollar plummets, urgent action is needed to address the root causes of the crisis and restore stability to the country’s economy.