Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) has committed to avail foreign currency for the acquisition of raw materials to bakers in a move that will see the cost of bread significantly reducing.
The price of bread currently stands at ZW$629 which is equivalent to US$1,85 in line with the official exchange rate and the unfortunate part of such a high price range is that many business people in the country’s highly informalised economy often take the commodity’s price as a benchmark to peg general prices.
Players in the baking sector justified the increases on a number of factors such as input costs involved in the sourcing of raw materials and delivery of bread.
But in a statement Monday, Reserve Bank of Zimbabwe governor, John Mangudya announced that he had a successful meeting with the sector’s players which will see the commodity’s price reducing going forward.
He said the meeting took into account the submissions by the baker’s association and the need to stabilise bread price and an agreement was reached for baker’s association to access the full requirements of foreign exchange through the weekly auctions for importation of inputs and procurement of fuel for the distribution of bread across the country.
“In view of the positive engagement with baker’s association, it is expected that members of the association will review the price of bread downwards.
Going forward the price of bread will be reviewed downwards in line with economic fundamentals that include global price trends of inputs and the movement of foreign currency exchange rate.
