Zim: Shops begin sales in foreign currency

  1. Posted on Sunday 28 September 2008 - 06:33
    Sam Banda Junior
    Image of Sam Banda Junior
    Sam Banda Junior, AfricaNews reporter in Blantyre, Malawi Photo: Elles Van Gelder
    The Zimbabwe Central Bank has given the go ahead to about 600 shops to start selling their goods in foreign currency in an effort to fight the black market trade and shortage of basic commodities. The Bank believes that the move would stop its citizens from shopping in neighbouring countries.
    Zim dollars_currency_Zimbabwe_Elles van Gelder
    Zimbabwe’s Reserve Bank top boss Gideon Gono stressed that the Zimbabwe dollar remained the official currency adding that basic commodities like maize flour would be sold in the local currency only.

    The country which is in an economic crisis and is struggling with the highest inflation ever at 11 million percent, has been hit by migration of its people in search of greener pastures.

    “We have successfully accepted about 600 applications,” said Gono during a handover of the licenses to the owners. A Reuters News Agency report on Thursday quoted Gono as saying that local manufacturers would be allowed to sell to the licensed shops in foreign currency and that Zimbabweans and foreigners would be able to run the stores.

    The report further said the Reserve Bank boss removed foreign currency restrictions for individuals, saying this was meant to allow them to use their foreign currency to buy from the shops.

    The Southern African country mostly uses two major currencies - the South African rand and the U.S. dollar. Media reports say basic goods are scarce in Zimbabwe and when they become available they are sold at high prices. Consumers pay less when using cash, which is in short supply, while those using electronic transfers and cheques can pay up to ten times more.

    Meanwhile the central bank governor announced that from next Monday the daily Zimbabwe dollar withdrawal limit would be hiked from 1,000 to 20,000. Zimbabwe recently wore a new hope which saw Zanu-PF and opposition political parties strike a power sharing deal.

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