Monday, June 30, 2025
No Result
View All Result
News Report  Zimbabwe
  • News that Matters
    • News
    • Health and Diseases
    • Technology
    • Religion
    • Horror and Disaster
    • Elections 2023
  • Crime and Courts
  • Celebrity
  • Sports
  • Mjolo
  • Breaking News
  • News that Matters
    • News
    • Health and Diseases
    • Technology
    • Religion
    • Horror and Disaster
    • Elections 2023
  • Crime and Courts
  • Celebrity
  • Sports
  • Mjolo
  • Breaking News
No Result
View All Result
News Report  Zimbabwe
No Result
View All Result
Home News

Economy edges concerning full dollarisation

February 11, 2024
0
Economy edges concerning full dollarisation

THE economy is edging closer to full dollarisation amid reports that the informal sector is rejecting the dual pricing regime, exclusively selling in the United States dollar.

Latest figures released by the Zimbabwe National Statistics Agency (ZimStat) yesterday, showed that 83% of transactions on key food purchases at national level were done in United States dollars.

“Data on currency of transaction for key food items such as maize meal, cooking oil, rice, beef and bread were also collected. At national level, about 83 of the transactions on key food purchases were in US dollars,” the ZimStat report read.

“The use of US dollars on key food purchases transactions was higher in rural areas (85,6%) than in urban areas (80,1%).”

The remaining 17% of key food purchases at national level, according to ZimStats, were conducted in Zimdollar (ZWL$) and South African rand (ZAR) with 6,4% carried out in both USD and ZAR.

A further 5,4% of the transactions were carried out using the Zimdollar and US$ while 1,7% was done only in ZWL with 3,4% carried out using all the currencies thus US$, local currency and the rand.

The increased use of the dollar comes as Finance, Economic Development and Investment Promotion deputy minister Kudakwashe Mnangagwa told Parliament on Wednesday that the government was aware that the informal sector was rejecting the dual pricing regime.

He was responding to legislators’ inquiries during that question and answer session on Wednesday this week.

Mnangagwa said the government policy and law allowed shops, retailers and industry to display the prices and the currencies of their choice, whether US$ or the local currency.

“So in that regard, if there is any rejection, it would be counter to the law, but you would find that this phenomenon is occurring probably in the informal sector.

“In more formalised shops, you have both the US$ and ZWL$ pricing, it then comes back to the initial affliction that we have which is the inflation and exchange rate disparities that are creating some of these issues.

“Let me repeat that the multi-currency regime draws us back to the fact that we need to compare our currency to other currencies and this is going to come out during the presentations that are going to be done soon in the monetary policy which is under the purview of the Reserve Bank of Zimbabwe,” Mnangagwa said.

He said the raft of measures being crafted would deal with fundamental issues which include the preservation of value of the local currency.

Mnangagwa said the government was also aware of the practice by retailers and shops of disconnecting point of sale machines to avoid payment in local currency.

He said this informed the government to come up with a cocktail of measures that ensured the preservation of value of the local currency.

The Zimdollar has been depreciating sharply against major currencies on low confidence. The depreciation has pushed up the prices of basic commodities.

The Zimdollar is trading at 1:10 927 against the US$ on the official market, 1:14 000 in supermarkets and 1:16 000 on the parallel market.

The Consumer Council of Zimbabwe this week revealed that the family basket had doubled to ZWL$6,2 million from ZWL$3,6 million in December due to the continued depreciation of the Zimdollar.

President Emmerson Mnangagwa told the first Cabinet meeting of 2024 this week that the government would soon introduce a raft of policy measures to arrest price increases, stabilise the foreign exchange rate and ultimately maintain the value of the Zimbabwe dollar.

However, economist Vince Musewe said the government should first address issues that erode confidence in the local currency.

“Price instability is a result of many issues including the political environment. When people do not have confidence in a system they seek value in the US dollar,” he said.

“You cannot legislate or control people’s psychological perceptions. You have to implement stable policies and deal with all the issues that erode confidence which include corruption, patronage and political persecutions.”

Source Zimbabwe Situation

Tags: EconomyZimStat

Related Posts

Zimbabwe’s Dam Levels Reach 85% Capacity, Boosting Water Security

Zimbabwe’s Dam Levels Reach 85% Capacity, Boosting Water Security

by Nyathi
June 30, 2025
0

The Zimbabwe National Water Authority (ZINWA) has announced that the country's national dam levels have reached over 85% capacity, indicating...

7 dead  3 escape the  Mass Shooting

7 dead 3 escape the Mass Shooting

by Nyathi
June 30, 2025
0

A devastating mass shooting in Gugulethu, South Africa, has claimed the lives of seven people, sparking widespread outrage and fear...

Wildlife Crime Investigation Underway in Hwange National Park

Wildlife Crime Investigation Underway in Hwange National Park

by Nyathi
June 30, 2025
0

Wildlife authorities have launched a probe into the discovery of a male elephant carcass with a missing tusk in Hwange...

South African President Condemns Xenophobic Movement

South African President Condemns Xenophobic Movement

by Nyathi
June 30, 2025
0

President Cyril Ramaphosa has strongly condemned Operation Dudula, a controversial anti-immigrant movement in South Africa, labeling its actions as "immoral,...

Harare Businesswoman on the Run: Warrant of Arrest Issued Over Alleged Fraud

Harare Businesswoman on the Run: Warrant of Arrest Issued Over Alleged Fraud

by Nyathi
June 28, 2025
0

A Harare businesswoman, Lilian Nyamasoka, has been issued with a warrant of arrest after failing to appear in court on...

The Rangemore Robbers’ Wild Ride Ends in Court

The Rangemore Robbers’ Wild Ride Ends in Court

by Nyathi
June 27, 2025
0

In a shocking turn of events, the notorious Makumbi brothers, Enock and Roy, were sentenced to 35 years each in...

Please login to join discussion

Trending News Today

  • Roosevelt Girls High School in Hot Water: Parents Raise Concerns Over Fees and Governance

    Roosevelt Girls High School in Hot Water: Parents Raise Concerns Over Fees and Governance

    192 shares
    Share 77 Tweet 48
  • Themba Gorimbo: The MMA Fighter Walking a Tightrope Between Sports and Politics

    113 shares
    Share 45 Tweet 28
  • Former President Robert Mugabe’s Son , Chatunga Causes Havoc in Mazowe

    247 shares
    Share 99 Tweet 62
  • South African President Condemns Xenophobic Movement

    34 shares
    Share 14 Tweet 9
  • Harare Businesswoman on the Run: Warrant of Arrest Issued Over Alleged Fraud

    77 shares
    Share 31 Tweet 19
  • The Rangemore Robbers’ Wild Ride Ends in Court

    148 shares
    Share 59 Tweet 37
  • 7 dead 3 escape the Mass Shooting

    17 shares
    Share 7 Tweet 4
  • 203 Cases of Serious Crimes Suspect in Custody

    129 shares
    Share 52 Tweet 32
  • Zimbabwe Revolutionizes Blood Supply System to Save Lives

    17 shares
    Share 7 Tweet 4
  • Wildlife Crime Investigation Underway in Hwange National Park

    16 shares
    Share 6 Tweet 4

Popular This Week

  • 77-Year Marriage Ends Over 60-Year-Old Secret

    77-Year Marriage Ends Over 60-Year-Old Secret

    262 shares
    Share 105 Tweet 66
  • Former President Robert Mugabe’s Son , Chatunga Causes Havoc in Mazowe

    247 shares
    Share 99 Tweet 62
  • Roosevelt Girls High School in Hot Water: Parents Raise Concerns Over Fees and Governance

    192 shares
    Share 77 Tweet 48
  • The Rangemore Robbers’ Wild Ride Ends in Court

    148 shares
    Share 59 Tweet 37
  • Courtroom Exchange: Mai Jeremiah Questioned by Defense Lawyer

    345 shares
    Share 138 Tweet 86
  • 203 Cases of Serious Crimes Suspect in Custody

    129 shares
    Share 52 Tweet 32
  • Polyandrous Pandemonium: Woman Drags Husband to Court Over Lack of Financial Support

    120 shares
    Share 48 Tweet 30
  • Themba Gorimbo: The MMA Fighter Walking a Tightrope Between Sports and Politics

    113 shares
    Share 45 Tweet 28
  • AFM Pastor’s US$158K Fiasco: A Holy Heist?

    103 shares
    Share 41 Tweet 26
  • Mai Titi’s Mysterious Message

    95 shares
    Share 38 Tweet 24

Popular This Month

  • Susan Mutami’s Desperate Plea To  Temba  Mliswa

    Susan Mutami’s Desperate Plea To Temba Mliswa

    447 shares
    Share 179 Tweet 112
  • Courtroom Exchange: Mai Jeremiah Questioned by Defense Lawyer

    345 shares
    Share 138 Tweet 86
  • Fatal Dog Attack Exposes Mike Mupinga’s Troubling Past

    299 shares
    Share 120 Tweet 75
  • Street Preacher’s Double Life Exposed

    295 shares
    Share 118 Tweet 74
  • Widow Caught in Bed With Lover a Week After Burying Husband

    272 shares
    Share 109 Tweet 68
  • 77-Year Marriage Ends Over 60-Year-Old Secret

    262 shares
    Share 105 Tweet 66
  • Man Narrowly Escapes Becoming a Lion Snack

    257 shares
    Share 103 Tweet 64
  • The Whipping Girls of Limpopo

    255 shares
    Share 102 Tweet 64
  • Former President Robert Mugabe’s Son , Chatunga Causes Havoc in Mazowe

    247 shares
    Share 99 Tweet 62
  • The Pilot Who Flew Under the Radar for 20 Years

    238 shares
    Share 95 Tweet 60

Most Read Stories

  • “Zimbabwe Is Discrediting SADC”

    ZANU PF Accused Of Bribing SADC Elders To Retain From Losing Power

    5249 shares
    Share 2100 Tweet 1312
  • Madzibaba gets Toyota Aqua after explaining new currency ZiG to church

    4542 shares
    Share 1817 Tweet 1136
  • Breaking News: Zimbabwe launches New Currency (Zig)

    4282 shares
    Share 1713 Tweet 1071
  • Guide : How to access 2023 Zimsec Ordinary O Level results online

    3977 shares
    Share 1591 Tweet 994
  • Uganda Police Officer Shoots Wife Dead After Mocking Him Over Man-U Loss

    3904 shares
    Share 1562 Tweet 976
  • Floods hit Gweru

    3595 shares
    Share 1438 Tweet 899
  • Mashura pa Gokwe musi wa 12.02.24

    3546 shares
    Share 1418 Tweet 887
  • Secret message for ED after his inauguration

    3486 shares
    Share 1394 Tweet 872
  • Heatwave Warning:Expect Extremely hot temp ranging from 36° to 41° until 12 March

    3395 shares
    Share 1358 Tweet 849
  • Here is the reckless Kombi Driver!!!!!!!!!!! See pics here

    3222 shares
    Share 1289 Tweet 806

  • About Us
  • Contact Us
  • FAQ
  • Privacy Policy
  • Terms of Service
  • Home

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • News that Matters
    • News
    • Health and Diseases
    • Technology
    • Religion
    • Horror and Disaster
    • Elections 2023
  • Crime and Courts
  • Celebrity
  • Sports
  • Mjolo
  • Breaking News