Business / Companies
Zimbabwe business rejects SA rand
13 Nov 2015 at 00:33hrs | Views
SOME businesses in Bulawayo and Gweru are no longer accepting South African rands due to its continued weakening against the United States dollar.
The development has created inconveniences for the transacting public as the slackening of the neighbouring country's currency against the US dollar has reached a five year low, trading between 14 rands to the US dollar.
A survey conducted by The Chronicle in Bulawayo's Central Business District (CBD) yesterday showed that most shops were not accepting rand coins while others were accepting notes only.
An official at the Bulawayo branch of a huge supermarket chain, who declined to be named said they stopped taking rand coins last week as the currency was losing value before they could order new stock.
"We're still accepting rand notes but we don't take coins. It's not making economic sense to accept the money because it loses value while we're holding on to it," said the official.
He said they prefer bond coins to rand coins.
Andrew Sithole, a businessman who runs a gift shop said it was now dangerous to do business in rands.
"I don't accept rands because I buy my wares in Harare using US dollars. I discovered that I was losing a lot of money because of the ever changing rates. So to be safe and avoid losses I decided to trade with one currency. Most of my customers complain but there's nothing I can do. I need to keep my business running," said Sithole.
Affected consumers, however, condemned businesses for shunning rands, saying it was an accepted currency in the country.
"My husband works in South Africa and he sends us rands for our upkeep. Of late I've been struggling to use the money in most shops because they no longer accept it. The government should intervene because the rand is still an acceptable currency in the country and we should not be stranded with the money," said Kholiwe Mkhwananzi from Cowdray Park.
Retailers, transport operators in Midlands Province are now also shunning the rand.
The development has given rise to money changers who have since mushroomed at street corners waiting for desperate customers who have the South African currency.
The Chronicle observed that retailers and transport operators are only accepting the bond coins and the United States dollar.
Money changers told The Chronicle that they were back in business.
"Everyone with rands is coming to us and we convert giving them the United States dollars, " said George Moyo who operates outside Chicken Inn in Gweru.
"There are willing buyers of the rand who buy in huge quantities and in a way supporting our business. Some who are studying in colleges and universities in South Africa come to us and buy that currency which they go and pay school fees with," said another spatheleni.
The Reserve Bank of Zimbabwe last week said it is holding bond coins worth $1 million in their vaults and the money can easily be deployed in the market to offset any imbalances that might result from the wholesale rejection of the South African rand.
The development has created inconveniences for the transacting public as the slackening of the neighbouring country's currency against the US dollar has reached a five year low, trading between 14 rands to the US dollar.
A survey conducted by The Chronicle in Bulawayo's Central Business District (CBD) yesterday showed that most shops were not accepting rand coins while others were accepting notes only.
An official at the Bulawayo branch of a huge supermarket chain, who declined to be named said they stopped taking rand coins last week as the currency was losing value before they could order new stock.
"We're still accepting rand notes but we don't take coins. It's not making economic sense to accept the money because it loses value while we're holding on to it," said the official.
He said they prefer bond coins to rand coins.
Andrew Sithole, a businessman who runs a gift shop said it was now dangerous to do business in rands.
"I don't accept rands because I buy my wares in Harare using US dollars. I discovered that I was losing a lot of money because of the ever changing rates. So to be safe and avoid losses I decided to trade with one currency. Most of my customers complain but there's nothing I can do. I need to keep my business running," said Sithole.
"My husband works in South Africa and he sends us rands for our upkeep. Of late I've been struggling to use the money in most shops because they no longer accept it. The government should intervene because the rand is still an acceptable currency in the country and we should not be stranded with the money," said Kholiwe Mkhwananzi from Cowdray Park.
Retailers, transport operators in Midlands Province are now also shunning the rand.
The development has given rise to money changers who have since mushroomed at street corners waiting for desperate customers who have the South African currency.
The Chronicle observed that retailers and transport operators are only accepting the bond coins and the United States dollar.
Money changers told The Chronicle that they were back in business.
"Everyone with rands is coming to us and we convert giving them the United States dollars, " said George Moyo who operates outside Chicken Inn in Gweru.
"There are willing buyers of the rand who buy in huge quantities and in a way supporting our business. Some who are studying in colleges and universities in South Africa come to us and buy that currency which they go and pay school fees with," said another spatheleni.
The Reserve Bank of Zimbabwe last week said it is holding bond coins worth $1 million in their vaults and the money can easily be deployed in the market to offset any imbalances that might result from the wholesale rejection of the South African rand.
Source - chronicle
