For some reason, businesses have decided to engage in space exploration as they continue to hike prices into the nether regions of space. This is despite the black market rate holding steady at around $17.80 per $1 USD for the major part of the last two weeks.
In Harare’s major supermarkets, including OK, Choppies, FoodWorld and TM, we saw a 300% increase in the prices of basics including Surf, Peanut butter and especially beef prices. Right now a KG of beef is going for around $100 which translates to $10 USD if you buy using cash. Now even if you factor fuel and electricity tariff hikes you cannot account for such prices. It is not clear what is going on here.
Meanwhile, after weeks of incessant cudgelling by the government, the black market rate has remained depressed at around $17.50 per USD. That is about $2 above the government manipulated interbank rate which is just above the $15.27.
According to Bluemari:
According to Marketwatch
USD / ZWL$ zimrates.com 17.8
USD / ZWL$ zwl365.com 17.5
USD / ZWL$ bluemari.info 17
USD / ZWL$ rbz.co.zw 15.27
USD / BOND zimrates.com 11.6
If the rate remains this low there is trouble on the horizon
If shops continue to charge the prices they are charging and rates remain this low there could be some trouble as foreign currency inflows will decrease.
Those in the diaspora will start sending goods instead of foreign currency as these prices are pretty steep compared to those of imported goods. Also, companies will start importing on their own circumventing local shops.
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