‘Unscrupulous businesses fuelling price distortions’

26 Oct, 2021 - 19:10 0 Views
‘Unscrupulous businesses fuelling price distortions’ Finance Minister, Professor Mthuli Ncube, recently warned businesses against flouting foreign currency regulations

The ManicaPost


Business Reporter


PEGGING prices in foreign currency parallel market rates by some unscrupulous retailers has been attributed to exorbitant figures being used by suppliers as well as delays in the distribution of auctioned forex by the Reserve Bank of Zimbabwe (RBZ), the Confederation of Zimbabwe Retailers (CZR) has said.


CZR president Mr Denford Mutashu said it has emerged that retailers are opting to use higher premiums to meet their procurement needs as some suppliers are also not using the gazetted official rates.


The suppliers, he added, cited that they are not acquiring all the foreign currency they require from the auction market.


“We had situations whereby some businesses are coming to our offices indicating that the going is getting tougher for them, especially with Government is moving ahead with enforcing the formal exchange rate. They say things are becoming very difficult on the procurement side with each passing day and after the enforcement blitz started, we have seen a lot of stock-out.


“Some manufacturers are actually withholding supply, indicating that it has become unviable for them to continue operating if they are not accessing all the foreign currency they need from the auction system,” said Mr Mutashu.


He called for the levelling of the playing field, with Government enforcing the official rate across board from manufacturers to retailers, including informal ones.


Finance Minister, Professor Mthuli Ncube, recently warned those that continue flouting foreign currency regulations by manipulating prices that they risk having their operating licences suspended.

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