Liberalise WBWS, RBZ told
SENIOR BUSINESS REPORTER
The Confederation of Zimbabwe Retailers (CZR) has urged the Reserve Bank of Zimbabwe (RBZ) to liberalise the willing buyer willing seller (WBWS) to discover the real market price of the Zimbabwe Gold (ZiG) at the official market.
The development comes as the basic commodities prices have skyrocketed in the past weeks following the disparities between the official market rate and parallel market rate.
Currently, the official rate is at ZiG13.95:US$1 against parallel market rate of ZiG28:US$1.
In a statement released today, CZR president Denford Mutashu highlighted the escalating prices in the retail and wholesale sectors caused by exchange rate volatility and stringent government regulations.
“Retailers and wholesalers should be allowed to trade at the market related exchange rates. This will allow for fair pricing, as the cost of procuring in US$ can be better reflected in fuel prices, avoiding distortions created by the current fixed rate,” Mutashu said.
He said the exchange rate is the primary driver of price increases.
“Retailers and wholesalers are caught between the rock of a dollarised supply chain and the hard place of earning in Zimbabwean dollars,” Mutashu said.
He said the government’s Exchange Control Act, which he claimed has further complicated matters.
“The Act’s rigid regulations and the FIU’s crackdowns have created a high-risk environment for businesses,” he lamented. “Many retailers and wholesalers are operating on a knife edge, forced to pass on increased costs to consumers.”
The CZR has called on the government to address several key issues.
He emphasized the need for the government to promote supply chain discipline, encouraging manufacturers and distributors to sell through formal retail channels.
“The government must ensure equal rules for all by enforcing consistent regulations across both the formal and informal sectors. It should also provide relief for fuel costs, either by offering fuel provisions in Zimbabwean dollars or removing fuel taxes for retailers,” Mutashu said.
He further urged the government to open borders for imports, allowing retailers to import basic goods without restrictions.
Dollar-for-dollar transactions should be implemented, requiring goods procured in US$ to be sold exclusively in US$.
“We are not asking for favors, but for a level playing field,” Mutashu emphasized.
“The current trajectory is unsustainable, and without meaningful intervention, we risk further closures and economic stagnation.”