Government’s 1:1 US/Bond Rate Fails to Work For the Hwindi

Government's 1:1 US/Bond Rate Fails to Work For the Hwindi

The Government’s 1:1 rate between the US Dollar and Zimbabwe’s local currency, nicknamed the Zollars, is failing to work for the software company, Hwindi, which will be offering a 75 percent discount to foreign currency starting tomorrow according to a Price Alert Notice by the Hwindi Management.

Hwindi is a mobile application for hailing taxis, delivery vehicles, tow trucks, and ridesharing services in Zimbabwe and Southern Africa to address transport problems associated with urban cities.

“Due to the prevailing economic conditions in the country, Hwindi and its partners cannot access the required foreign currency at the regulated exchange rate of 1:1 between USD and local dollars. So for us to remain in business and continue servicing you, we have resolved to a 75 percent discount on our rides where payable in USD or acceptable Forex so that we start generating the foreign currency we desperately need,” the Hwindi Management says.

“We will continue to accept RTGS, local cards, mobile money and Bond notes as valid modes of payment but a discount will be effected if payment is in USD or other acceptable forex.”

The Hwindi Management indicated that foreign currency is needed to pay services that cannot be substituted locally in Zimbabwe.

“As a software company, we require foreign currency to meet the Hwindi application hosting, maintenance, servicing and channel integration costs such as Google Maps, Hostgator, Twilio messaging gateway, PUBNUB real-time updates and Mailgun, which cannot be substituted locally,” the Management says. “These are all built up together to make the application complete and functional.”

“As for our Vehicle partners, they require foreign currency for ALL spares now!! The spares are now being sold on a 2 tier pricing and its always ‘cheaper’ in USD than local dollars”

“In some instances our partners are procuring fuel in USD in order to continue servicing our dear clear,” the Management continues.

The Zimbabwean government has been stating that the local currency is equivalent to the US Dollar on a 1:1 ratio.

Contrary, black market, a source of foreign currency for Zimbabweans has been rating the local currency much lower than the US Dollar.

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