by Nobleman Runyanga
Many foreign currency dealers have been left nursing serious losses after the exchange rate on the parallel market took an overnight steep plunge last night following Government’s assurance of continued parity in the value of between real time gross settlement (RTGS) balances and the United States dollar.
This followed the Minister of Finance and Economic Development, Prof Mthuli Ncube’s announcement on Wednesday that he had secured funding to maintain the value of RTGS balances against the greenback.
The rates, which peaked to around $600 to US$100, yesterday fell to as low as $200 by end of the day. This morning many currency traders were unsure of the future of their illegal trade. The very few who were still giving indication rates pegged it at $150 to US$100.
“Haa zvaoma. Izvozvi hapana ari kutengesa mari. (It’s tough. No trading is going on). Over the years we have been surviving on trading in currency but this time around, we have been dealt a severe blow,” said one Harare trader who only identified himself as Diva.
The unsustainable parallel market exchange rates threw the market into turmoil as it sparked steep price increases which saw most people engaging in panic buying and hoarding. This was further fuelled by speculative projections of the phasing out of funds denominated in Bond notes.
“We realised unusually high sales this and last week as people sought to convert their money into assets. One customer insisted on us selling him a faulty refrigerator, which we intended to return to our suppliers, and we did. All electrical appliances and other high value items such as liquefied petroleum gas tanks were literally all wiped away in just two days,” said an OK Supermarket Avonlea branch till operator, who spoke to the Harare Post last night on condition of anonymity.
The plummeting of the exchange rate came as relieving news to consumers who are anticipating the normalisation of the situation.
“I was very happy when I heard this morning that parallel market rates were tumbling which points to the return to normal life. The past week has just been hectic and stressing. I’m grateful to Government for intervening. I’m now expecting normal pricing, restocking of shops, usual trading and normal life,” said Sheila Maruma of Chichera Plot near Harare.
“Going forward, I anticipate the Zimbabwe that we have always known after a week of madness. It is my fervent hope that after solving this, Government will continue its economic turnaround programme,” said Peterson Chimwanda of Ruwa.
