Gvt extension of multi-currency to 2030 fosters confidence- says Edgars as Q3 sales rise to 28.5%

Clothing retail giant Edgars Stores Limited has expressed optimism about the government’s move to extend the multi-currency system until 2030, fostering confidence in the overall economy.

This addresses uncertainties arising from the initially proposed 2025 cut-off period, notes the retail giant.

Approximately 80 percent of local transactions are being conducted in US dollars, aligning with forex-dominated bank loans.

Edgars’ group CEO notes improved stability post-plebiscite, contributing to a surge in unit sales by 28.5% in third quarter.

Despite currency instability’s impact on disposable incomes, operational performance and credit sales indicate positive trends.

Zimbabwe’s government said it will maintain its multi-currency system, anchored by the U.S. dollar, to 2030.

The government had previously said that the multi-currency system would end in 2025. This had triggered uncertainty in the banking sector, with some banks refusing to give loans past 2025.

In a government gazette, President Emmerson Mnangagwa repealed the 2019 order which had given 2025 as a deadline.

“Settlement of any transaction or payment for goods and services in foreign currency, shall … be valid until the 31st December, 2030,” reads the gazette.

Economists say nearly 80% of local transactions are in U.S. dollars amid waning confidence in the Zimbabwean dollar.

Zimbabwe abandoned its inflation-ravaged dollar in 2009, opting instead to use foreign currencies, mostly the U.S. dollar. The government reintroduced the local currency in 2019, but it rapidly lost value again.

Despite repeated efforts by authorities to boost confidence, the Zimdollar has weakened by over 80% this year, according to economists.

Zwnews