RBZ heeds CCZ call

RBZ heeds CCZ call

Nevanji Munyaradzi Chiondegwa

The Reserve Bank of Zimbabwe has heeded the call by the Consumer Council of Zimbabwe to follow sectors getting priority on the currency auction market, but continue to chase the parallel rate.

Bakers have been one of the most supported businesspeople in the country, but they have not acted in good faith in their pricing.
Last week, RBZ and National Bakers Association of Zimbabwe met to discuss bread prices.

The meeting resulted in an agreement between the Bank and the Bakers Association to avail foreign currency to them in full and for the Association to review price of bread downwards.

This was said by RBZ Governor Dr John Mangudya in a press statement.
Dr Mangudya said, “The Reserve Bank of Zimbabwe (the Bank) wishes to advise the public that it held a consultative meeting with the National Bakers Association of Zimbabwe (the Bakers Association) on 17 June 2022 and deliberated on the cost build-up in the bread value chain.”

He said that the Bank took into account the submissions of the Bakers Association and that members will now access full foreign currency requirements.

He said, “Taking into account the submissions by the Bakers Association and the need to stabilise the price of bread, the Bank agreed with the Bakers Association that that its members would access their full requirements of foreign exchange through the weekly foreign exchange auctions for importation of inputs and procurement of fuel for the distribution of bread across the country.”

It is now expected that the price of bread will now be reveiwed downwards said Dr Mangudya.
“In view of the positive engagement with the Bakers Association, it is expected that members of the Bakers Association will review the price of bread downwards.:

He also said, “Going forward, the price of bread will be adjusted on account of economic fundamentals that include global price trends of inputs and the movement of the foreign currency exchange rate.”