MEIKLES says revenue received in foreign currency by formal retailers is below 20 percent due to uncompetitive US dollar prices from in-store exchange rate policy compliance.
This comes as businesses in the country have been fighting for survival in the face of rising competition from informal traders who are not subject to the pricing margins implemented by authorities.
“The in-store exchange rate policy remains an albatross on formal retail in attaining the dollarisation level reached by most businesses in the economy. This creates ongoing supply chain challenges as suppliers are invoicing in USD and prefer settlement in USD,” Meikles said in a trading update.
The diversified group says there are ongoing engagements with monetary and fiscal authorities on changing the in-store exchange rate policy.