Experts and economists have warned that Zimbabwe could be facing some serious basic commodity shortages in supermarkets soon as terrified manufacturers shun formal businesses over exchange rate issues. The government has been insisting that businesses ought to use the official rate when pricing their goods even when they do not get their foreign currency from the official auction.
Currently on the black market rates have gone up as high as $200 ZWL as to 1 USD while the official rate is less than 50% at $90 ZWL. We at Zimpricecheck and others as well have observed a reduction in the number of locally made items on shelves. Also according to some supermarkets, suppliers have started to limit their resupply orders and are no longer fulfilling all their orders.
The suppliers are instead preferring to supply the so-called tuckshops that can be found in downtown Harare and places like Mbare. The tuckshops pay in foreign currency or at in some cases ZWL cash which is untraceable, unlike formal supermarkets that pay using RTGS.
Businesses have blamed SI 127 for causing chaos in the economy as businesses are now being demonised and criminalised for conducting legitimate economic activity. Instead of sharing up the Zimbabwean dollar using foreign currency reserves the government has instead resorted to punitive laws.
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