ZiG Devaluation Can Trigger Shortage of Basic Goods – Bankers
Prices of basic commodities could rise resulting in shortages following the devaluation of the Zimbabwe Gold (ZiG) last week by the Reserve Bank of Zimbabwe, according to bankers.
Newsday reports that the warning by the Bankers Association (BAZ) was contained in a leaked internal document with issues that were discussed when its constituents met RBZ governor John Mushayavanhu on Tuesday this week.
“If market conditions remain unfavourable, such as high inflation, low investor confidence or trade imbalances, the ZiG will depreciate rapidly. This can lead to higher costs for imports and inflationary pressures on goods priced in foreign currency. There’s a need to ensure sufficient forex to meet demand. Demand can be limited by minimising creation of local currency.
“If the exchange rate weakens significantly, it could lead to higher prices for imported goods, driving inflation higher in an economy already struggling with price instability”.
ZiG Devaluation Can Trigger Shortage of Basic Goods – Bankers
In other news…
Self styled prophet Talent Madungwe, has pleaded guilty to negligent driving and driving without a driver’s licence.
Madungwe appeared before Epworth magistrate, Tafadzwa Miti, who rolled over the case to Monday for the pre-sentence hearing and sentencing.
The complainant is Rutendo Kwinjo. Prosecutor Rutendo Nyamutswa said on August 6, at around 10am, Madungwe left his house along Airport Road and turned right onto the main road.
Retailers Limit Essential Goods Sales Amid ZiG Crisis
He side swiped Kwinjo, who was driving a Nissan NP300 single cab with registration number ACG 8313, along the same road as they were heading towards Harare CBD. Kwinjo’s car was slightly damaged.
