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CZR warns members on price distortions

27 Mar, 2017 - 00:03 0 Views
CZR warns members on price distortions

The Chronicle

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Kiyapili Sibanda, Business Reporter
THE Confederation of Zimbabwe Retailers (CZR) has issued a strong warning to its members who are implementing a three-tier pricing system in defiance of the Reserve Bank of Zimbabwe guidelines.

A three-tier pricing system entails differentiation in prices — those who buy using plastic money (swiping), US$ cash buyers and a price for bond notes, for the same product.

According to the RBZ the three-tier pricing system being used by some retailers is illegal.

“The RBZ has come down hard on such retailers who are practising it (three-tier pricing) and this must stop in order to ensure a market discipline.

“We are working hard to make sure that retailers are not short-changed and definitely a solution to this kind of madness would be found,” said CZR president Mr Denford Mutashu.

He said his organisation was working with the RBZ to make sure that the laws of the country are observed and retailers should not violate them to their own advantage.

“Retailers are abusing the Bank Use Promotion Act and we don’t condone such behaviour in the market.

“We need a retail business environment which has a comprehensive policy for the situation to be better and consumers must not be found wanting,” said Mr Mutashu.

He said three-tier system must stop as it was fuelling rating of bond notes against other currencies, which distorts the pricing market policy.

Mr Mutashu, however, said manufacturers who are in the habit of always demanding cash as a form of payment must stop it and must accept all forms of payment as prescribed by the RBZ.

“We hear there are manufacturers who always demand cash as a form of payment which is not acceptable. All forms of payment must be accepted and we are coming hard on such companies,” he said.

Mr Mutashu also said some businesses were hoarding and selling cash, taking advantage of the shortage of US dollars in the market.

“The externalisation of money in the market puts unnecessary pressure on consumers and manufacturers. This affects the economy which has started showing signs of recovery because of the bond notes and use of plastic money,” he said.

Meanwhile, Mr Mutashu said those retailers who do not have Point Of Sale (POS) machines must acquire them so as to embrace the use of plastic money.

@Kiyaz_Cool

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