Companies exposed for shunning official exchange rate

By ZBC Reporter

Various Companies have been exposed for indexing their prices to the parallel market exchange rate in defiance of government’s directive to revert to the official rate.

In a development that is pushing the foreign exchange rate on the parallel market, and threatening the economic gains recorded so far, some big corporates continue to defy government’s directive to align their pricing system with the prevailing official foreign currency exchange rate.

This comes after a fast food chain was exposed for pegging prices at a whopping 200 US dollar rate when the official rate was 86 to the greenback.

Despite repeated warnings by treasury for industry to revert to the official exchange rate in their pricing models, an investigation carried out by this news crew revealed that the same organisation remains unmoved and is still pegging prices using parallel market rates.

Another fast food chain is selling a portion of chicken and chips for two US dollars fifty and at an equivalent of 400 Zimbabwe dollars, which translates to a rate of 1 is to 160. 

A furniture retailer in Harare is also exhibiting similar pricing shenanigans and is using hefty parallel market rates of around 175 in another clear indication that unjustified pricing malpractices are rife in the economy.

Conversation with shop attendant…………….” Zbc Reporter…….. How much is the couch?

Shop attendant …. This couch is going for 373000 Zimbabwe dollars.

Zbc reporter…… “How much is it in Us dollars?

Shop attendant……. “The cost of the couch is USD 2100 and we are using a rate of 1 is to 175.”

Efforts to get a comment from the respective companies’ representatives were fruitless as their phones went unanswered.

Government has declared zero tolerance to exchange rate manipulators and has taken these economic saboteurs head on, with several culprits now behind bars for fueling the illegal parallel market.

What remains unanswered is the reason why these big companies accessing forex from the auction system are using extortionate parallel market rates which are hurting the ordinary citizens and the economy.

The post Companies exposed for shunning official exchange rate appeared first on ZBC NEWS.

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