Price of bread expected to drop as RBZ intervenes

Zimbabwe’s central bank has agreed to provide bakers their full requirements of foreign currency for the importation of inputs and procurement of fuel to push down the price of bread.

Central bank governor John Mangudya said the bank met the bakers association on 17 June and after discussions they agreed to review the price of bread downwards.

“In view of the positive engagement with the Bakers Association, it is expected that members of the Bakers Association will review the price of bread downwards,” the central bank said.

“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.”

The price of bread had gone up in recent weeks as the local currency continued to plunge especially on the black market.

The Zimbabwe dollar is currently trading at between $460 and $620 on the black market but is pegged at $338.4921 at the auction rate and $344.0152 at the interbank rate.

Some economists had predicted that the local currency will collapse this month with others saying it would drop to $1 000 to the greenback.

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