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Retail firm, OK Zimbabwe on Friday  said introduction of the local currency, the Zimbabwe dollar, has  stabilised retail prices and expects them to drop further as the new  currency gains momentum.

As part of wider economic reforms, government re-introduced the local  currency late last month, declaring it the sole legal tender while  banning the use of foreign currencies in domestic transactions.

This has resulted in initial marginal price decreases with further drops expected.

In a statement, the retail giant welcomed the introduction of the local  currency.

“We welcome the new SI 142 (which introduced the local currency) which  we believe will stabilise prices and allow us to deliver the good prices  and value you have always expected and enjoyed from us,” said the  company.

“We have always received good support from our supplier partners,  accordingly we have engaged them and some have started to moderate  prices in response to SI 142.”

It added: “We will continue this engagement to ensure that we together  with them deliver the value you have always enjoyed.”

The company said the price hikes witnessed over the past months were  influenced by parallel market exchange rates which reached a peak of  1:15.

“The last month of June has been turbulent as we received numerous  price increases from our supplier base as they chased the exchange rate  movement,” it said.

But, with the introduction of the local currency, the parallel market  exchange rates have gone down to around 1:7,5.

Meanwhile, the official interbank market has gained momentum offering  exchange rates higher than those obtaining at the black market. —  New Ziana.