8 July 2019

Zimbabwe: Ok Welcomes New Currency

Retail firm, OK Zimbabwe on Friday said introduction of the local currency, the Zimbabwe dollar, has stabilised retail prices and expects them to drop further as the new currency gains momentum.

As part of wider economic reforms, government re-introduced the local currency late last month, declaring it the sole legal tender while banning the use of foreign currencies in domestic transactions.

This has resulted in initial marginal price decreases with further drops expected.

In a statement, the retail giant welcomed the introduction of the local currency.

"We welcome the new SI 142 (which introduced the local currency) which we believe will stabilise prices and allow us to deliver the good prices and value you have always expected and enjoyed from us," said the company.

"We have always received good support from our supplier partners, accordingly we have engaged them and some have started to moderate prices in response to SI 142."

It added: "We will continue this engagement to ensure that we together with them deliver the value you have always enjoyed."

The company said the price hikes witnessed over the past months were influenced by parallel market exchange rates which reached a peak of 1:15.

"The last month of June has been turbulent as we received numerous price increases from our supplier base as they chased the exchange rate movement," it said.

But, with the introduction of the local currency, the parallel market exchange rates have gone down to around 1:7,5.

Meanwhile, the official interbank market has gained momentum offering exchange rates higher than those obtaining at the black market. -- New Ziana.

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