The Zimbabwean dollar has gained strength over the past 3 weeks, pushing down prices on the black market and leading to official rates reducing.
Businesses have started reacting by lowering their prices, with some supermarkets and shops cutting costs by up to 20%. Bread is now $6,500 instead of $9,000. A 2kg bag of sugar has dropped from $30,000 to $18,000. Toll and vehicle license fees have also gone down.
The fading black market rate – which peaked at 10,000ZWD to the dollar – is now around 7,000-8,000ZWD. Officially prices should be set at around 5,250ZWD. Council bills are also being adjusted down.
So after months of sky-high inflation, could relief finally be on the way? Finance boss George Guvamatanga says there are “positive signs” and expects further stability. Shoppers are happy with the drop so far but want more.
“The prices are helping – we need them to keep falling,” said one.
Experts warn it’s early days yet but say if the dollar continues to firm up, costs should keep reducing. More measures like gold coins could help boost confidence in the local currency. But for now consumers will sigh with relief that some money is finally going further in the shops. Roll on the price plummet!