The recent scraping of the multi-currency regime has seen the falling of the parallel market exchange rate, and expectations are that prices should follow the trend soon.
The new monetary measures knocked down the parallel market exchange rate from US$1:ZW$15 at peak to the current levels of US$1:ZW$7.
With the rate having of late been used to index prices, economic analysts believe prices should start falling in light of the new exchange rate trends.
“Subsequent exchange control measures have also been put in place to guarantee liquidity of the interbank market, hence there are high rationale expectations that prices of goods and services will soon be going down in alignment with the exchange rate trends,” an economic analyst, Mr Kipson Gundani explained.
Confederation of Zimbabwe Retailers (CZI) President, Mr Denford Mutashu is optimistic about the moral standing and sincerity of his constituency in as far as the pricing of goods and services is concerned and this has also seen some lead firms complying with current trends by adjusting their prices downwards.
“As an association, we are doing all we can for prices to reflect their cost structure without prejudicing consumers,” he said.
High volatility especially on the black market exchange rate had become the source of price instability, hence government is doing all it can to efficiently operationalise the interbank market to subdue the parallel market.