Official guidelines require that formal retailers set prices based on the official exchange rate of 14.8 ZiG to $1 or face fines.

But retailers, including OK Zimbabwe, Spar and TM Supermarkets – a local unit of South Africa’s Pick N Pay (PIKJ.J), opens new tab, argue that this overvalued rate is making their products more expensive than those in informal shops, driving away customers.

“The situation is clearly untenable and will lead to company closures if authorities do not intervene with policy measures to protect the formal retail sector,” Retailers Association of Zimbabwe (RAZ) said in a letter addressed to the Ministry of Finance and seen by Reuters.

The retailers said while they had to adhere to the official exchange rate as required by authorities, their suppliers are charging black market rates, forcing retailers to hike prices.

“Implementing a pricing model that reflects real-time market exchange rate fluctuations can help us remain competitive while managing costs,” the retailers said.

The treasury could not be immediately reached for comment.

Striking workers at Boeing aren’t interested in a new pay deal made by the company, that’s according to the union representing them, which said Tuesday it had done a poll to

The ZiG is the country’s sixth attempt at a stable currency in 15 years and economists say its devaluation points to lack of public confidence in the new currency.

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