More than 300 Zambian cross-border traders in Livingstone bordering Zimbabwe have stopped crossing into Zimbabwe following the Zimbabwean government's directive to ban the use of any other currency than U.S. dollars in buying Zimbabwean dollars and restrict currency purchases to banks only, Times of Zambia reported Friday.

The Livingstone Cross Border Traders Association has written to its mother body seeking guidance on the way forward, said the association's chairperson Felix Daka in the capital city of Southern Province of Zambia.

He said the traders could not make any profit under the new conditions that have been accompanied by the introduction of the new Zimbabwean currency with changed notation to mitigate the high inflation levels being experienced in the neighboring country. Under Zimbabwe's parallel exchange rate before the changes are introduced, the Zimbabwean currency is selling at a far much cheaper rate on the black market than the official outlets like banks and bureaux de change.

"The development has affected our members who have since stopped their business because they cannot cope with the conditions, but we are discussing with our mother body and our counterparts in Zimbabwe to see how, and if, the decision can be revisited," said Daka.

Zimbabwean economy has undergone difficulties over the past years with inflation rising to as high as 1,200 percent.

Daka also bemoaned the introduction of what he termed as the Zimbabwean government's artificial barrier to trade, including the new requirement for any body dealing in currency exchange to produce a form known as CD 1 before purchasing any merchandise.

Source: Xinhua