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Reserve Bank's decision to allow retailers to sell commodities in forex
Zimbabwe Congress of Trade Unions (ZCTU)
September 11, 2008

The Zimbabwe Congress of Trade Unions (ZCTU) views the announcement by the Reserve Bank of Zimbabwe (RBZ) Governor, Dr Gideon Gono, that the RBZ will licence at least 1 000 retail shops and 250 wholesalers to sell their products in foreign currency, as admission of policy failure by the monetary authorities.

Dr Gono must face it, this is dollarisation.

What is worse, (and that has become the trend during Dr Gono's tenure at the RBZ) is that he has virtually taken over the ministry of industry and international trade by taking it upon himself to licence these shops.

As the ZCTU has said before, we reiterate theat Dr Gono must concentrate on monetary issues like making sure that people of Zimbabwe get adequate cash from banks instead of the current pathetic Z$500, an amount that cannot take any worker home from work.

The governor's new measure will adversely affect most of Zimbabwe's workers who earn their wages in local currency. The suggestion that some basic commodities, like mealie-meal, cooking oil, milk and medicines would be sold in local currency is foolhardy as these are the same commodities that are not found in retailshops. Gono might as well let all commodities be sold using foreign currency.

Following this announcement by Dr. Gono, the ZCTU will from now onwards advise all trade unionists to negotiate in forex. This is the only way workers would be able to buy from the shops that sell goods in forex.

Visit the ZCTU fact sheet

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