Want to peg them against interbank rate
THE Harare City Council is pleading with Government to be allowed to review rates to match the interbank rate.
The local authority argues that the current price hikes of goods and services, driven by interbank rate fluctuations, are negatively impacting on its ability to deliver services to residents.
Addressing the media in Zimbabwe’s capital on Friday, Council Information and Publicity Committee Chair Barnabas Ndira said council is faced by rising costs on the back of near static income.
“Our service providers are pegging their prices at interbank rate while our rates which are our biggest revenue source remain unchanged because they are subject to ministerial approval. We feel it is high time we are given the flexibility to follow the interbank market heartbeat,” Ndira said.
“The budget we are using was pegged at a time when the Bond note was 1:1 with the US dollar but now the interbank rate is 1:17. We are in the process of formulating a supplementary budget but it may also be rendered useless by the time we seek the necessary approvals from Government.”
Government is yet to comment on Harare City Council’s proposition.