The recent launch of the Zimbabwe Gold (ZiG) currency by the Reserve Bank, backed by gold and other precious metals, along with foreign currency reserves, has provided scant relief for long-suffering consumers who continue to grapple with price increases.
ZiG is already circulating on the market electronically, but the release of banknotes and coins, preferred by the majority of traders who don’t have bank accounts, was delayed by 21 days.
The RBZ has pledged to drip-feed the notes and coins into the market starting on 30 April 2024.
According to a NewZimbabwe.com report, shops across the country favour the US dollar for transactions, with some linking ZiG prices to the volatile street rate.
Some retailers especially the major retail chains are displaying prices in both USD and ZiG dollars at the official exchange rate, while others are pegging prices using illegal exchange rates.
The official interbank rate stands at US$1: ZiG13.44 but some retailers are transacting using rates as high as ZiG19.00.
According to a snap survey carried out by NewZimbabwe.com, at Gain Cash and Carry, owned by National Foods, a 10-kilogram packet of mealie meal was priced at ZiG107 while in US$ it was being sold at US$6.20.
The same product at TM Pick n Pay was selling at US$6.97 while in local currency it had been pegged at ZiG92.70
Mohammed Mussa displayed signage accepting the local currency but reportedly refused to accept the transactions at till points.
A cashier at one of the four operational tills said the system had been down since Thursday morning. On Friday morning and later in the afternoon, the system “was still down.”
However, an unsuspecting worker at the wholesaler told the publication that they were yet to accept ZiG currency payments. Said the employee:
Pafeya chaipo muno ZiG haritodiwe. Kungoisawo hedu notice incase law enforcement agents walk in. (To tell you the truth, we are only displaying as you can see but ZiG is not accepted here. But you can go to the cashiers and ask).
This practice by unscrupulous businesses leaves many Zimbabweans, who earn their salaries in local currency (wholly or in part), at a disadvantage.
Confederation of Zimbabwe Retailers (CZR) president, Denford Mutashu advised consumers to report to authorities when shops reject ZiG or use street rates. Said Mutashu:
The issue is sometimes we don’t even have airtime to call authorities. It will be a huge sabotage if any retailers are breaching the law, it is not nice and of course, we can always tip law enforcers.
So far, I have not used ZiG myself so I’m not very sure about the situation unfolding on the ground.
Rosemary Mpofu, the chief executive officer of the Consumer Council of Zimbabwe (CCZ), said:
CCZ is always in constant engagement with government especially on topical consumer issues. Our recent survey has observed that the big retail outlets have aligned with exchange rate requirements.
However it is the small retailers and tuckshops that continue to shortchange consumers through speculative tendencies, and they have been doing this even before the introduction of ZIG.
In that respect, we continue to engage government to enhance the enforcement aspect, further to that, CCZ continues to educate consumers on shopping tips and avoid service providers that use exorbitant rates.
We also recommend stiffer penalties or revoking licenses for those promoting speculative tendencies.
The government has previously warned retailers against such practices, and the Financial Intelligence Unit (FIU) says it has frozen the bank accounts of 11 entities for refusing to trade in ZiG.
More: Pindula News