Companies risk it all to earn US dollars as Zim currency slides | Fin24

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Foreign currency earnings are replacing local currency income for Zimbabwean companies and banks. | Fin24

Foreign currency earnings are replacing local currency income for Zimbabwean companies and banks.

Companies are risking it all in Zimbabwe as they gun for earnings in foreign currency and try to stay out of trouble with monetary authorities that are cracking down on firms deemed to be promoting usage of US dollar and driving down the value of the Zim dollar unit of exchange. Social media campaigners have called for protest action against Mnangagwa’s administration on Monday, a week after a wave of price increases and a crippling public transport crisis took a toll on Zimbabweans.

Faced with the risk of tipping over and also being chastised for price increases, Zimbabwean companies are risking it all. They continue to trade in foreign currency despite the risk of arrest and have been raising earnings in US Dollars, further evidence of an economy preferring hard currency more than the local unit of exchange.Bankers are now anticipating an increase in foreign currency deposits while local foodstuff manufacturers are recording increased sales in foreign currency.

"The business maintained the focus on foreign currency generation to improve the capacity to procure raw and packaging materials," said the dairy manufacturer.

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