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 Business Reporter
THE National Bakers Association of Zimbabwe has agreed to reduce the price of bread after reaching key agreements with the Reserve Bank of Zimbabwe (RBZ).

Reserve Bank of Zimbabwe (RBZ)

The two parties held a consultative meeting on Friday focusing on the cost build up in the bread price value chain.

The meeting follows complaints from consumers who are saying the price of bread is now beyond the reach of many.

Depending on the retail outlets and bread brand, a standard loaf of bread is now pegged at $640 with supermarket bakeries selling slightly lower.

In an update yesterday, the Central Bank Governor, Dr John Mangudya, said members of the Bakers Association of Zimbabwe would now have access to foreign currency at the weekly foreign exchange auctions.

The money, according to Dr Mangudya, is specifically for the importation of inputs and procurement of fuel for the distribution of bread across the country.

“Taking into account the submissions by the Bakers Association and the need to stabilise the price of bread, the bank agreed with the Bakers Association that its members would access their full foreign exchange through the weekly foreign exchange auctions for importation of inputs and procurement of fuel for the distribution of bread across the country,” reads part of the statement.

“In view of the positive engagement with the Bakers Association, it is expected that the members of the Bakers Association will review the price of bread downwards. Going forward, the price of bread will be adjusted on account of economic fundamentals that include global price trends of inputs and the movement of the foreign currency exchange rate.”

Prices of basic commodities have been skyrocketing amid concerns that this is influenced by parallel market exchange rates and profiteering.

To cushion consumers from price shocks occasioned by geopolitical developments in Europe and local speculative behaviour, the Government recently suspended duty on basic commodities including cooking oil, sugar and maize meal.