Farmers press for review of exchange rate

Source from:  tobaccoreporter.com Zimbabwe 03/26/2007

As had been expected, tobacco auction floors failed to open in Harare yesterday as growers continued to press for a review of Zimbabwe's fixed exchange rate, according to a Financial Gazette report quoting industry officials. Tobacco auction floors normally open during April, but the government had pushed for an early start, which seems to indicate that the country's foreign currency situation is worsening. The report quoted unnamed analysts as saying that the delay would certainly worsen the foreign currency crisis that has impaired the country's ability to import essential raw materials, spares, fuel and electricity. The tobacco industry is demanding a review of the exchange rate, which has not moved since a 60 per cent devaluation on July 31. The Tobacco Industry and Marketing Board's acting chief executive, Andrew Matibiri, said tobacco farmers wanted an exchange rate in line with the parallel market rates. The US dollar was trading at Z$13,000:US$1 on the parallel market yesterday, while the official rate remained at Z$250:US$1. Enditem