Landlords charging tenants in forex

MOST landlords in Bulawayo’s western suburbs are charging their tenants in South African Rand and Botswana Pula, citing the depreciation of the local currency whose value continues to tumble against major currencies.

Landlords who spoke to the Zimbabwe Guardian said that they had resorted to charging their tenants in foreign currency because their savings were quickly being eroded by rampaging inflation, now estimated to be over 165 000 percent.

“As from the 1st of this month my lodgers are now paying me in forex. Their rent has been quickly eroded by inflation and in the past and I could not save money for the maintenance and extension of the house,” said Timothy Sigauke, a landlord in Nkulumane.

The practice is also said to be rife in some parts of rural Matabeleland where villagers are also selling their livestock in foreign currency.

“Most villagers along the border with South Africa and Botswana are no longer accepting Zimdollars, even for ‘lobola’ (bride price). They spend most of their time working outside the country and you cannot blame them for dealing in forex,” said Terrence Moyo, a Fast Food dealer at Plumtree border post.

Unveiling his monetary statement last week Reserve Bank of Zimbabwe Governor, Gideon Gono warned against the widespread use of scarce foreign currency in the trade of goods and services, which he says is illegal.

The government, however, levies luxury imported luxury goods in foreign currency.