Zimbabwe Cross-border Traders Association (ZCBTA) has condemned the recent government move to lift an earlier ban on importation of basic commodities, saying more measures should be taken to avoid flooding of goods from other countries.
Speaking to 263Chat, the group chairperson Killer Zivhu said the resultant effect of the new measure will be a rise in parallel foreign currency rates and prices since everyone will be able to import goods on their own.
“As cross border traders, we feel that there are more measures that should be taken in order to avoid the flooding of goods because now if it is a 50/50 situation, there is going to be an increase and the demand of Forex is going to be high hence.
“The rates are going to increase anytime from now since everyone wants to go out to buy things on their own and the prices are going to increase because no-one will want to trade in bond notes after getting money on the streets,” said Zivhu.
He added “So whoever is going to do business will be demanding forex and that is going to affect the majority who are getting their salaries in bond notes or transfers.”
Zivhu added that they will only welcome the move if it is only for a short period of time.
“So it has got its own advantages but at the same time its going to have disadvantages but if it is for a temporary measure for Christmas holiday yes we welcome it because we cant have Christmas without basic commodities.
“But in order to sustain and to make sure that the government is eradicating poverty then the measure must not fail because its disadvantages are more catastrophic to the economy than its advantages,” he said.