New system sees air fares from Zimbabwe spiral

Martin Rushmere
AIR FARES from Zimbabwe are likely to rise monthly following a decision by the Board of Airline Representatives in April to quote local currency equivalents according to the parallel market exchange rate rather than the official rate.
In the last four months fares have risen by more than 40% as the value of the Zimbabwe dollar has plummeted.
The parallel rate is ZW$135 to the $, compared with the official rate of 55.
"To all intents and purposes, the private sector has abandoned the official rate," said a senior official of the Harare office of an international airline. "To get any foreign currency we have to go through the parallel rate. If we tried to source through the banks we would be out of business as there is nothing available."
Even the government airline, Air Zimbabwe, is basing its fares close to the parallel rate, despite public statements by ministers that heavy penalties are payable for dealing outside the official market.