THE ZWG currency’s woes seem to be far from easing as retailers are still insisting on a three-tier pricing system.
Using the pricing strategy local retailers offer three different pricing choices for the same product.
Introduced on April 5 2024 as the country’s lasting solution to currency problems, the local unit fared well during the first four months before waning significantly before the end of its six-month lifespan following the widening of parallel market rates which went up to a high of US$1: ZWG 30 on the alternative markets as compared to the premium of ZWG13, 80 which obtained on the official market.
Saddled with the distortions, the Central Bank intervened and approved a raft of measures which among others included devaluing the local unit by 43% and hiking interest rates to curb speculative borrowing.
While the levels of exchange rate volatility have eased off after the measures were announced, a visit by the NewZimbabwe.com news crew to several outlets across Harare’s Central Business District revealed that challenges associated with the local unit are quietly persisting.
Retailers are still demanding exclusive US$ prices for specific products while holding on to a three-tier pricing strategy depending on the method of payment.
For instance, Colgate Maxfresh is sold exclusively in US$ at the Food World supermarket, while Rabroy Tomato Sauce in ZIG/USD/CASH is sold at an equivalent of US$1.10 and the same product is selling at US$1.25 for ZIG/USD/Swipe.
At the same shop, a 330 ml can of coke is pegged at ZIG/USD/CASH US$0, 64 and for ZIG/USD/SWIPE US$0, 88.
“Such pricing structures leave us desperate as customers because when we receive our salaries, we are not enjoying any such benefits since we are paid at a flat rate. Authorities must urgently act on these anomalies because they provide a sound basis for deducting confidence in the currency,” one customer at Food World Supermarket said.
Some of the retail outlets are still limiting the number of products which can be paid for in the local ZWG currency while others are making local currency purchases complicated.
