By James Gwati- The Grain Marketing Board (GMB) has officially scrapped all local currency transactions, opting to operate exclusively in US dollars.

In a statement released Friday, the parastatal announced that all payments to farmers will now be made in US dollars.
“GMB will purchase all wheat financed under the Presidential Input Programme (PIP), as well as wheat from self-financed farmers, who will have the option to sell to the GMB or the market, whichever offers the best terms. Additionally, GMB remains the buyer of last resort, and contractors will buy back contracted wheat at market prices,” read the statement.

The board also noted that it will collaborate with the Zimbabwe Mercantile Exchange (ZMX) to provide commercial warehouse receipt services to all stakeholders.

The shift to the US dollar by the GMB follows the recent rejection of the Zimbabwean dollar (ZiG) by major retailers across the country.

Last week, numerous large stores began declining ZiG payments, insisting on US dollar transactions for goods and services.

The rapid decline of the ZiG has resulted in a sharp rise in the cost of goods and services, as retailers replaced prices in local currency with those in US dollars.

The scarcity of local currency has further forced the general public to rely increasingly on the US dollar for everyday transactions and savings.

Meanwhile, the black market exchange rate for the ZiG remains volatile, ranging between ZWG24 and ZWG28 to the US dollar.

Basic commodities such as flour and mealie-meal have become scarce in supermarkets, with some retailers removing local currency price tags altogether, reflecting the nation’s growing dependence on the US dollar.