APA-Harare (Zimbabwe) The Zimbabwe government has introduced a raft of new measures aimed at stabilising the country’s comatose economy in the wake of a worsening crisis that has seen some retailers refusing to accept the local dollar during the past few weeks.
Finance Minister Mthuli Ncube said in a statement the measures, which are meant to preserve the purchasing power of the Zimbabwe dollar and restore trust and confidence in the economy, included a requirement for all government agencies to “substantially now” collect their fees in local currency, and reduction from two to one percent of a tax imposed on all electronic payments.
In addition, all payments to the Zimbabwe Electricity Supply Authority by non-exporters would, with immediate effect, be made in local currency, the minister said.
“All customs duty to be payable in local currency, with the exception of designated or luxury goods, and where the importer opts to pay in foreign currency,” Ncube said, but did not specify which goods would be deemed luxuries.
Until now duty on all imports has been payable in foreign currency, mostly United States dollars or South African rands.
Ncube ordered the liquidation of export proceeds earned from exports as a strategy to push holders of huge idle US dollar deposits to circulate their money into the economy and avoid artificial shortages.
“All export proceeds that remain unutilised after 90 days will be liquidated onto the interbank market.”
The measures came in the wake of a free-fall in the Zimbabwe dollar that has seen the local unit sliding 49 percent from 1,047 per greenback on the official foreign currency market on April 30 to Z$2,045:$1 as of Tuesday.
Most Zimbabweans – businesses and individuals alike – prefer using the US dollar which is currently trading at between Z$4,000 and Z$5,500 on a thriving parallel market.
Businesses prefer the greenback due to its stability as a store of value and most – especially those in the informal sector – do not bank their daily takings.
Individuals with access to US dollars benefit from an exchange premium since most formal sector businesses are forced to set their prices at the official rate.
JN/APA