There was panic buying over the weekend marked by shortages of basic commodities such as cooking oil and fuel.
RBZ governer Dr. John Mangudya has attributed this to “growing market indiscipline.” The Reserve Bank of Zimbabwe is now working towards crafting a new instrument that would ensure cash barons dealing in the parallel market are arrested.
“Enough is enough. We have to take action against the parallel market operators. We are currently working on an instrument which we hope will help us deal with these black market dealers. I think that maybe we need to engage the police to make some arrests,” he said.
“We have said it many times that there is a lot of market indiscipline. This is what is causing the panic buying in the shops because to us everything should be okay.”\
Zimbabweans fear that the panic buying experienced over the weekend is a signal of the much-dreaded 2008 era.
In this tumultous economy, the cash barons seem to be benefiting the most. With their well-secured economic connections, it means that they will always have cash to trade on the parallel market.
The demand for cash resulted in the public rushing to cash dealers who saw an arbitrage opportunity and shot cash premiums to between 40% and 45%, transfers or hard cash.
Cash has become very scarce in Zimbabwe.