Queuing in front of stores of rice importers to buy a bag of rice has started, as importers fear that increasing the price of a bag of rice despite the continuous drop in the value of the Leone will anger the public and authorities.
The continuous depreciation of the Leone to major foreign currencies especially the US Dollar has pushed importers to sell rice on retail basis instead of passing the responsibility to wholesalers. The role of the middlemen and women has been taken over as the importers fear that an increase in the country’s staple food will lead to public outcry. Both wholesalers and ordinary men and women now queue in front of the headquarters of rice importers to buy 50 kilogram bags of rice at retail cost.
Some of the importers who are “not of negro African descent” an expression that defines citizenship in Sierra Leone fear that despite the amount of money they have to pay to get the Dollar and import the rice from Asia, it is very difficult for them to raise prices at this time. Even on the condition of anonymity, they could not explain the reason but kept saying that the best way to do it and please both government and the people is to get rid of the retailers.
The buying rate of the US Dollar on the black market on September 1st was Le7,100. Barely a week ago it was selling in the same market at Le7,000. The volatility of the exchange rate and the fear not to anger both the governors and the governed is pushing retailers out of business.
Rice is a major commodity in the Consumer pricing index (CPI). It has a huge impact like fuel in the CPI basket. Inflation has increased to double digits and currently stands at 10.53 percent. Some believe inflation has gone in real terms beyond the current figures and they predict that a dollar will sell for 10,000 before the end of the year.
Monday September 05, 2016
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