Zimbabwe’s Delta Corporations Limited has raised concern over the continued shortage of foreign currency a challenge yet to be resolved since the coming in of the New Dispensation.
The challenge of foreign currency, which was inherited from the former President Robert Mugabe’s administration has resulted in mines, suspending operations as they fail to access raw materials.
“The (Delta) Board is concerned about the company’s ability to access foreign currency in order to meet its external obligations,” the company’s secretary Alex Makamure said.
Delta had challenges in providing soft drinks during the end of 2018 festive season as the company failed the access raw materials which are purchased in foreign currency.
Delta’s secretary also commented on Zimbabwe’s exchange rate which officially ended the government’s stance on 1:1 US Dollar to RTGS currency, and says the value of the RTGS$ deposits continues to be eroded by the fast depreciating exchange rates and cost push inflation.
“Resultantly, there has been a severe decline in aggregate demand,” Makamure explains.
“The acute shortage of foreign currency persists despite the introduction of the inter-bank foreign exchange market.”
“The exchange rate needs to be supported by robust and complementary fiscal and monetary policies.”
In response to the foreign currency challenge Vice President Constantino Chiwenga during the Zimbabwe International Trade Fair (ZITF) last Wednesday said it was shocking that Zimbabwe gets more foreign currency than its peers and yet there is always shortage.
The VP said this as foreign currency, which is in shortage in banks appears to be in abundant on the black market.
