RBZ, Bakers agree to lower the bread price

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RBZ WhatsApp Image 2019 09 23 at 10.34.13

HARARE – The Reserve Bank of Zimbabwe (RBZ) says the price of bread is set to come down after reaching an agreement with the National Bakers Association of Zimbabwe, which will see its members get priority on auction allocations.

This follows a public outcry that the essential commodity’s was now being priced beyond the affordability of many after a recent wave of increases in its price. However, this also signals that the RBZ intends to keep the exchange rate on the auction system lower under a crawl peg.

In a statement , RBZ said bakers will now access their foreign currency requirements through the Central Bank’s auction system in the cost build-up in the bread value chain.

“The Reserve Bank of Zimbabwe wishes to advise the public that it held a consultative meeting with the National Bakers Association of Zimbabwe on June 17 and deliberated on the cost build-up in the bread value chain.

“Taking into account the submissions by the bakers association and the need to stabilise the price of bread, the bank agreed that the association’s members would access their full requirements of foreign exchange through the weekly foreign exchange auctions for importation of inputs and procurement of fuel for the distribution of bread across the country,” reads the statement.

RBZ described its engagement with the bakers association as positive.

Adds the statement: “In view of the positive engagement with the bakers association, it is expected that its members will review the price of bread downwards. 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 rate.”

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