TRUWORTHS Zimbabwe says its Zim dollar cash sales were negatively affected by currency regulations during the year ended July 9, 2023.
The crux of the issue lies in the in-store “willing buyer-willing seller” exchange rate, currently set at 10 percent above the central bank’s auction rate.
Retailers argue this “artificially inflated” rate puts them at a significant disadvantage compared to informal players operating outside the regulated system.
Truworths said price controls coupled with informalisation of the economy has resulted in cheap and fake imports selling at below manufacturing costs which the business could not compete against weighed on its sale of merchandise.