Innocent Sibonginkosi Ncube
Despite government efforts to stabilize the currency, some businesses in Bulawayo continue to reject transactions in Zimbabwe Gold (ZiG), opting for foreign currency instead.
“The surge in black-market exchange rates has emboldened some unscrupulous businesses to defy government directives,” said Ngonidzashe Dzvairo a local businesswoman.
“It’s frustrating to see them reject ZiG, knowing it’s our official currency.”
Dzvairo went on to explain that when she supplies government ministries or entities she is paid exclusively in the local currency, ZiG.
The official exchange rate remains at about ZiG14 to the USD, but black-market rates have peaked at US$1:25 ZiG, leading to economic instability.
“Some businesses are faking network issues with their point of sale machines to justify exclusive trading in foreign currency,” said another trade who wishes to remain anonimous.
“It’s a clear defiance of government directives and hurts consumer purchasing power.”
The rejection of ZiG undermines government efforts to maintain its utility and stability.
It becomes worse for residents of Bulawayo who are forced to pay public transport in the US dollar, they buy most of their groceries from Messina Shops as well as from Car Boots or informal market who trade in the US dollars. The informal sector does not accept the local currency no matter what.
A major liqour retail outlet is leading in rejecting the ZiG. It has been established that the owner or the front who is running this liqour Retail chain has connections with the ruling Zanu-PF party. The chain has branches at Ascot Center and several in the CBD.
“We urge businesses to comply with government directives and accept ZiG,” said a government official whose name cannot be said as he was not sanctioned to speak to Zim GBC News
“We will continue to monitor the situation and take necessary measures to ensure compliance.”
Zim GBC News©2024