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It is all over the country now that the
Rand’s value has drastically dropped leading to the sky rocketing of the value
of the US Dollar. This has hugely impacted on the Zimbabwean economy,
considering that Zimbabwe buys the bulk of its imports from south Africa (more
than 60 percent). This is a situation that can get worried not only business
people, but also the bulk of the citizens. This is because if imports prices
are high, the prices of products in the local shops will also rise.
However, economic analysts have
passed their comments on the situation.
Zimbabwe National Chamber of
Commerce president Mr Oswell Binha feels the depreciating rand would make
imports from South Africa somewhat less expensive and benefit the economy
significantly through informal trade. He said by using the US dollar it
actually means getting products cheaper in a rand domain unless there are
some changes in the pricing system.
But another leading economic
analyst said the fall in the US dollar/rand exchange rate would not benefit
importers unless local companies were able to buy and sell in the rand
currency. This then means to trade with South Africa we use the rand, but
still have prices in dollars. Since we use the rand to import, imports will
become expensive. If we were exporting it means dollar exports would become
more expensive.
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Analysts expect the rand to see
further weakness, and warn that the dollar rising above R9,2 , of which now it’s
at R10.
In such a situation, don’t you think
this is the time when Zimbabwe needs to revive its own economy?? Say out your
views, let’s discuss
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