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Retailers have responded to the strengthening of the local currency by reducing prices of most basic commodities. The products whose prices have been reduced include sugar, cooking oil, salt, roller meal and rice among others. This is as it should and we want at this juncture to commend retailers for being sensitive to the plight of consumers.

Most of those that have revised prices downwards are the big retail outlets and we call on those yet to adjust prices to do so. It is a win-win situation if retailers pass on the benefits of the strengthening local currency to consumers because they will enjoy brisk business. What was happening in the past few weeks when retailers were adjusting prices daily as they chased the black market exchange rates, should not be repeated.

Producers of goods and wholesalers, we want to believe, have also revised prices downwards in response to the strengthening local currency.

It is encouraging to note that sanity is returning to the market place and as we have said, businesses should avoid forward pricing which destabilises the economy.

The local currency volatility witnessed in May and June this year was mainly as a result of illegal forex dealers and it is our hope that Government continues to enforce measures to starve these dealers of local currency which they have been abusing.

Finance and Economic Development Minister Professor Mthuli Ncube has said there have not been any changes in the economic fundamentals to warrant price hikes and as such we expect businesses to continue reducing prices in response to the strengthening local currency.

Many businesses have now embraced the multi-currency system and as such are selling their goods in both forex and local currency unlike what was obtaining in the past when some products were being sold exclusively in forex.

Finance and Economic Development Minister Mthuli Ncube

Many workers are earning salaries in local currency and as such the strengthening of the local currency impacts positively on their purchasing power.

The obtaining situation whereby the local currency is strengthening is a positive development to the economy.

It is the use of local currency that has enabled the country to revive a number of companies and increase productivity. When companies are able to pay the bulk of their production costs in local currency, the goods they produce are competitive at international markets.

It is against this background that Government is promoting the use of local currency for most domestic business transactions. We want to implore businesses to remain ethical and avoid engaging in activities that destabilises the economy.

It is a fact that the countries the world over use local currency for domestic transactions while reserving forex for imports and Zimbabwe is no exception. The multi-currency system the country has adopted is therefore temporary.