ZiG helps maintain price stability
THE price of basic commodities has remained stable both in ZiG and US dollars, with the local unit appreciating against the greenback owing to several fiscal and monetary interventions made by Government.
Some prices of basic commodities have in fact decreased in response to the tight measures by authorities, while uptake of the ZiG has increased in most mainstream business outlets.
This was said by Information, Publicity and Broadcasting Services Minister Dr Jenfan Muswere while delivering a post-Cabinet media briefing in Harare yesterday.
He said Cabinet received and noted an Update on Prices and Availability of Basic Commodities in the economy during the Second Quarter of 2024, covering the period April to June 2024, as presented by Industry and Commerce Minister Mangaliso Ndlovu.
“The Second Quarter of 2024 was largely characterised by stability in the prices and availability of basic commodities across all provinces, both in ZiG and USD terms. The ZiG currency slightly appreciated in value by 0,51 percent against the US dollar during the period under review, with the tight monetary stance that has been maintained having resulted in exchange rate stability, which has translated into the stability of prices of basic commodities on the market,” said Dr Muswere.
“The market is well stocked with mealie-meal and its price has been stable, ranging between ZiG100,01 and ZiG103,8, and between US$5,30 and US$8,50 for a 10-kilogramme pack.
“The price of a 2-litre bottle of cooking oil has been stable as well, ranging between ZiG54,63 and ZiG56,50, and between US$3,30 and US$4,70. The price of bread has also remained stable, ranging between ZiG14 and ZiG14,50, and between US$1 and US$1,20. Sugar supply has relatively improved countrywide and its price has remained stable during the months of May and June 2024. The price of laundry soap remained unchanged, ranging between ZiG23.13 and ZiG23.50 in local currency.”
He said there was gradual convergence between prices of the informal market and formal market, an indication that measures that have been put in place are bearing fruit.
“The prices of most basic commodities in the formal sector are gradually converging with prices in the informal market, and the prices of some basic commodities, such as cooking oil and mealie meal, decreased in response to the measures put in place to deal with price increases witnessed during the First Quarter of 2024,” Dr Muswere said.
“There is improved ZiG uptake in the market, with transactions on Point of Sale machines seen to be dominant in major formal retail outlets. Most outlets have pegged their products in ZiG, while a few still display prices in United States dollars, although the prices are payable in both currencies. In most retail shops, 80 percent of the formal retailers’ transactions are currently in ZiG, while 20 percent are in United States dollars.”
In it’s statement released last week, the Reserve Bank of Zimbabwe Monetary Policy Committee said the stabilisation measures implemented by the bank since the beginning of April 2024 have already shown results.
According to the committee, these measures have led to a month-on-month Zimbabwean dollar (ZiG) inflation rate of -2,4 percent in May 2024, a notable achievement in the context of the country’s economic challenges.
The inflation rate is expected to be around 0 percent in June 2024, driven by declines in both food and non-food inflation.