‘Zim has no price distortions’

BY VENERANDA LANGA

GOVERNMENT has denied there is a three-tier pricing system with Industry and Commerce deputy minister RajeshKumar (Raj) Modi claiming the 2019 Monetary Policy Statement (MPS) by Reserve Bank of Zimbabwe governor John Mangudya completely solved the issue.

Modi was speaking in Parliament during a question-and-answer session last week.

Bulawayo East MP Ilos Nyoni (MDC Alliance) had asked Moji to explain the measures government was taking to resolve the three-tier pricing system currently prevailing in the market.

“Let me inform the House that the question on the three-tier pricing of commodities has been overtaken by events following the February 20, 2019 monetary statement by the Governor of
the Reserve Bank of Zimbabwe, during which he introduced an exchange rate between the RTGS$ and the US$,” Modi said.

But Nyoni said the three-tier pricing system was still in effect, with different prices when one was buying using Ecocash, ZWL$ and US$, with a lot of distortions prevailing in the
interbank market as well as overpricing.

“Practically, what is prevailing in the market is different from what the minister is saying,” the legislator argue.

Prices of goods and commodities are being charged in either the United States dollar, ZWL$, which is virtual money, and in bond notes.

Modi, however, maintained that the three-tier pricing system was solved when the MPS was announced, adding that prices were now determined by the prevailing exchange rate.

Mbizo MP Settlement Chikwinya (MDC Alliance) insisted on that there is a price distortion arising from the fact that the exchange rate, as obtained at the bank, is not the same as
obtained even on the Old Mutual implied rate.

“This is what is making the three-tire pricing system continue. The question is: what policy measures are you putting in place to ensure that we eradicate the three-tier pricing system taking into cognisance the reality on the ground?” he said.

5 Comments

  1. you see the type of people we are dealing with who doesent know for fact that things have four prices now us rate cash rate rtgs rate ecocash rate

  2. ko munyi ka muno mane ma Guptas futi seku South Africa? uuummm ataura zvisingataurike murungu uyu panguva vanhu vari kurwadziwa kudai.

  3. Sgaqa se Onion

    The minister is a pathological liar. He exactly knows all about the prevailing pricing system on the ground. He is a well known businessman from bulawayo. Even in his shops he uses the same pricing strategy of robbing poor customers of their hard earned cash.

  4. Modi is not serious with what he is talking about.What currency is he pricing his goods at his Liqour shop.He talks of no price distortion where as he is getting a salary in forex while we get bond.He should stop mocking people

  5. It all comes from which camp he is coming from,Once from ZANU pf a person starts to think and see things upside down.Modi cannot understand,come out with a solution since he is part of the problem.

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