New Zimbabwe.com

Delta: Foreign currency availability on interbank market improves

By Staff Reporter


ZIMBABWE’s foreign currency situation seems to be improving, if indications from the country’s biggest beverages manufacturer is anything to go by.

The economy went into tailspin following a government decision to effectively introduce a new currency through the back-door in February triggering a price rush that has pushed desperate citizens to the edge.

Business has also complained that a currency interbank market introduced at the same as the new medium of exchange has not been effective in providing the requisite foreign currency to keep industry running. Other critics have accused government of embelishing figures related to trade on the currency market.

But in a statement Tuesday, Delta Beverages operations director Max Karombo suggested the situation has improved greatly to the extent that the blue-chip company sees increased demand for its products and the need to revert to selling them in the local currency.

“Following the improvement of foreign currency availability on the interbank market for ongoing operations, we are pleased to offer all our returnable glass packs in RTGS$ with immediate effect. The policy position applies to both beer and soft drinks,” said Karombo.

In January this year, Delta arguably the biggest company in the country caused a stir after it announced it would be selling its products in US dollars.

The announcement was followed by a flurry of meetings between the company’s management and Industry Minister Mangaliso Ndlovu with authorities desperately trying to arm-twist the beverages manufacture to rescind the decision.

In the statement Karombo added: “We urge all our wholesale and retail partners to align prices to our suggested price schedule for our salesforce constantly communicates. We also appeal for the return of all empties back to our depots and breweries to facilitate capacity to meet demand.”

The latest move by Delta is likely to bring some positivity into a reeling economy given the moral sway the company holds in local business circles.