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Economist Warns Against Issuance Of US Dollar-denominated Salaries

Economist Warns Against Issuance Of US Dollar-denominated Salaries

Top economist, Vince Musewe has warned against the issuance of US dollar-denominated salaries saying the move would be inconsistent with international best practices.

He said the government should instead adjust salaries in tandem with inflationary pressures.

Several workers bodies were highly anticipating a return to US dollar-denominated salaries in the national budget delivered by Finance Minister, Mthuli Ncube on Thursday.

The Finance Minister, however, indicated that workers will continue receiving the local currency. 

Musewe hailed commitments by the Reserve Bank of Zimbabwe (RBZ) which were also confirmed in Minister Ncube’s 2022 Budget, saying such initiatives will navigate the economy through the current hardships. He said:

He (Ncube) mentioned that the auction is going to be fine-tuned so that we create a stable environment and macro-economic stability. To me, that’s the direction we need to move in but obviously implementing these ideas may be a different issue altogether.

The seasoned economist maintained that “every economy must have its own local currency”, highlighting that there should be no debate about that.

He said the task before the nation, is about how to create confidence in our own local currency, which he said requires all systems to rein in volatility triggers.

He said it is important to appreciate the fact that the main sources of foreign currency are companies that have strong exports adding that some of the foreign currency on the market comes through diaspora remittances and “has nothing to do with government.” He quizzed:

So we have to be careful in demanding the US$ because my question is. Where will that money come from?

He urged authorities to increase wages and salaries in line with inflationary pressures saying this will solve issues being raised by teachers, civil servants and workers in general once and for all.

More: NewZimbabwe

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ambassador 5 months ago

Vince is right.we should use our local currency & that is the only way to go but we have the problem to do with confidence in our local currency.people no longer have confidence especially from the gvt that produces my opinion the current establishment is not enough to end the crisis the nation is experiencing

Mr ndhlumbi 5 months ago

Putsek wako economist

Manikiniki 5 months ago

So called economist repa whatsapp chete when they are contributing nothing in the development of the country with their useless economics degrees. What has he contributed in building this economy? Nothing! But from nowhere kuswika kutisurira apa, getaway mani.

Kkkk 5 months ago

Well said Musewe. Our local currency is the way to go. Vanovukura vachanyarara zvavo. We can never be a country without our own currency. The challenges we are facing right now will end. Viva Zimbabwe.

Daniel Chimsuri 5 months ago

Uyu anogara muZimbabwe yipi .... Ndovakaita Eco's Pasi pemuti

Boss Theo 5 months ago

Seasoned economist

Juda 5 months ago

Musewe, same WhatsApp group naTafadzwa Mugwadi and George Charamba


Chikomborero 5 months ago

Uyu museve uyu haana nyaya anogara muZimbabwe ipi.saka ordinary people vofira kugadzira economy yakapaziwa nevamwe.kungoda kunzi ndataurawo kwemagrade 7 aya

Chamatams 5 months ago

Taurai henyu. Vanhu ngavapiwhe USD salaries. Everything in the streets is being sold in US$. Kana ma vegetables chaiwo ava in US$ e.g. potatoes etc. Kuzoti zvipfeko aaa hatichatauraka.

Vaka 5 months ago

Kuregister foni kwakuda usd anoti inobvepi iwe usingatambiri usd taura hako Chapwititi

Chapwititi 5 months ago

Top economist ummm,analysis yake zvainenge yemuGrade 7.

Vaka 5 months ago

Musewe gara pasi hapana zvawataura

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