Government slammed over salary initiative

The Zimbabwean Government's move to pay its workers US dollar-denominated allowances as the country struggles to stabilise its local currency has been described as ‘crazy’ by an economist and member of the central bank's monetary policy committee. Fin24 previously reported that President Emmerson Mnangagwa's administration had hiked civil servants' salaries in local currency by 50% and also awarded them a US$75 Covid-19 allowance. Using the parallel market exchange rate of 75, the allowance is more than the US$40 government workers, including teachers and nurses, are currently earning. A report on the News24 site notes that committee member Eddie Cross said there was not enough money in government coffers to support such the move, which would cost more than $20m. ‘I think the problem is it establishes a precedent for the private sector as workers will demand the same thing,’ he said.