Volatile Zim Dollar Forces Businesses To Re-dollarise
Several small to medium scale enterprises (SMS) have reportedly re-dollarised due to the volatility of the Zimbabwe dollar.
The local currency jumped from USD1: ZWL14 to USD1:24 in a matter of days. This has prompted most of the SMEs to revert to the stable US dollar even though the move is illegal.
A seller of cellphone accessories in Harare told 263Chat that the oscillating Zimbabwe dollar may force them out of business. He said:
Last week we replenished stocks from suppliers who were using a rate of ZWL$22 against the US dollar and guess what happens after that, the exchange rate tumbles and we are now forced to sell our stuff at lesser selling price because the rate is now down to ZWL414. We will end up closing shops and this is why we are resorting to the USD.
