Make no mistake: High prices are not the same as speculation – INAE in Nampula | Ikweli

Login

Register

http://www.clubofmozambique.com/

Make no mistake: High prices are not the same as speculation – INAE in Nampula | Ikweli

8:10 CAT | 18 Feb 2021

Photo: Ikweli

The increase in food prices in Nampula cannot be treated as speculation, according to provincial delegate of the Inspection of Economic Activities (INAE) in Nampula, Élio Rareque.

The INAE director’s approach and the concept he adopts may be of concern, since, according to the dictionary, speculation is “a financial transaction in which profits are subordinated to market variability or instability”.

“We monitor 12 essential products, including rice, corn flour, cooking oil, wheat, potatoes, onions and beans,” Rareque says, “and we can verify that the profit margin is balanced, and that there is no price speculation.”

Although acknowledging that the situation “is worrying, because basic products have seen a price increase”, Rareque maintains that “it has been determined that this is a result of the international situation”.

“As we know, a large part of [our] produce comes from South Africa and the borders were closed because of the coronavirus situation, so we started to have a shortage of food products. Other products come from China and India, where export prices have almost doubled, and economic agents are having difficulty obtaining US dollars [to pay for these] in the international market,” Rareque explains.

Still, the INAE will continue to monitor any rise in the price of essential products, with Rareque calling on the population “to keep calm”.

However, this concept of speculation and the approach adopted may still be of concern to some, since, according to our dictionary, speculation is “the financial transaction in which profits are subordinated to market variability or instability”.

By Elisabeth José

Source: Jornal Ikweli