Consumers and corporates in Zimbabwe have had to do with price increases and other companies moving into price products in dollars. The central bank had to intervene and pledge to avail forex to avert Anheuser-Busch InBev’s associate in Zimbabwe, Delta Corporation, selling its products in dollars.
Delta Corporation said in a joint statement with the Reserve Bank of Zimbabwe last week that the central bank “will endeavour to provide the foreign currency required to ensure that Delta continues to trade” under the current situation.
The government allocates foreign currency to companies to import raw materials as it insists that the bond note quasi-currency in circulation in Zimbabwe is equal in value to the dollar, despite a parallel market valuation premium of up to 250percent.
“Other companies would have followed Delta and the danger is that civil servants do not have access to forex. That’s why the government had to intervene, but this is just a short-term reprieve as all companies are struggling for forex,” said economist Moses Moyo.