Forex change shortage frustrates consumers

CONSUMERS and businesses have expressed frustration over the scarcity of smaller foreign currency denominations on the market, which makes transacting in hard cash a challenge.

In Bulawayo and Victoria Falls it is difficult to get change in US$1, US$2 and US$5 notes. Consumers and businesses say smaller forex denominations have been scarce since the beginning of the year and the situation has worsened after the Government approved forex transactions.

Other currencies such as rand and pula are not spared as their smaller denominations are also scarce on the market. Financial institutions also struggle to issue smaller denominations to depositors when paying out clients.

Also affected are DStv subscribers as banks and agents now require people to bring money that does not require any change. Some shops are now rounding up prices to multiples of five, which is making goods and services more expensive for consumers.

Some traders in Bulawayo even encourage clients to opt to get their change in bond notes or pay through swipe at premium rates of between 1:100 and 1:110, way above the official forex exchange rate of below 1:82.

Tourism operators in Victoria Falls are feeling the heat as they are dealing with domestic clients who mostly do not have Visa cards.

Calls have been made for the Central Bank to urgently address the situation and the tourism industry players have escalated the issue to Government seeking an urgent intervention through monetary and fiscal policy measures.

“Lack of smaller cash notes for change is a nightmare. We have raised the issue with the Minister of Finance and Economic Development and we appeal to banks to get smaller notes and supply the market,” said tourism executive, Mrs Trish Mambinge, during a recent tourism industry indaba organised by the Zimbabwe Tourism Authority.

“It’s either there is no change at all and when we get the notes they are embarrassingly dirty and torn and it’s difficult to give a client such money.

“I am sure there are smaller notes somewhere locally and also in the respective source countries hence our monetary authorities must be able to import.”

In a follow up interview Hospitality Industry Association chairman for the Victoria Falls chapter, Mr Anald Musonza, encouraged consumers to use plastic money.

“The issue of small United States dollar denominations especially US$1 and US$5 has affected our industry in a big way and it’s a huge inconvenience to smooth business transactions,” he said.

“Businesses including operators are finding it difficult to give back change to clients. We encourage people to use plastic money or online payment methods.”

Immediate interventions are needed as business is being lost, said Consumer Rights Association (CRA) spokesperson, Mr Effie Ncube.

“The issue of change, particularly smaller denominations for United States dollar, rand and pula is an immense challenge for consumers and businesses alike,” he said.

“Businesses are losing on sales as customers sometimes end up walking away because there is no change. Consumers also have to move from shop to shop looking for change and sometimes leave without buying or are forced to buy things they hadn’t planned for just for the sake of change.

“This calls for immediate intervention of the Reserve Bank of Zimbabwe, which should import smaller denominations and make sure that it doesn’t disappear from the market.

“We need fiscal and monetary law enforcement measures and a sustained way of keeping currency denominations in circulation,” said Mr Ncube. —-chronicle.cl.zw