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Salary review for civil servants
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The Government of Zimbabwe is set to adjust the wages of civil servants in response to the recent 42.55 percent increase in the Zimbabwe Gold (ZiG) exchange rate against the United States dollar, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube revealed yesterday. The adjustment follows recent changes by the Reserve Bank of Zimbabwe (RBZ), aimed at stabilizing the economy.
Speaking on the sidelines of President Mnangagwa's State of the Nation Address, Prof Ncube confirmed that negotiations are already underway within the Tripartite Negotiating Forum (TNF), which brings together government, labor, and business representatives.
"Yes, we have to, I think we have to. We are looking into it and we are already negotiating through the Tripartite Negotiating Forum to adjust the wages of civil servants. Hopefully, we will reach an agreement soon and then we can move forward and assist the civil servants," he said.
Prof Ncube assured that the wage adjustments would take place before the end of the year, aiming to restore the buying power of civil servants, who have been affected by inflation and exchange rate fluctuations.
Addressing Currency Adjustments and Wage Impact
The minister acknowledged the impact of currency adjustments on wages across both the public and private sectors. He emphasized the government's commitment to ensuring wage increases to protect workers' livelihoods in the face of rising costs.
"Wages have to be adjusted both in the public sector and private sector to improve the buying power of wages for workers. That is what happens when a currency is adjusted—it causes those other negative impacts. But there are also positive impacts on the business front. We are determined to save jobs in our formal economy," he added.
Tackling the Black Market
On addressing the resurgence of the black market for foreign exchange, Prof Ncube stated that corrective measures are being planned, in line with President Mnangagwa's call for action during his address. However, he remained tight-lipped on the specifics, noting that revealing too much would undermine the government's strategy.
"Yes, we are looking at additional measures to deal with the parallel market. I cannot pronounce what form these will take, and I also don't want to announce when action will be taken," he said.
Gold-Backed ZiG Currency
Addressing the issue of whether the ZiG is backed by gold, Prof Ncube confirmed that Zimbabwe's reserves are indeed backed by gold, although the exchange rate itself is not fixed to the value of gold. He explained that the central bank has been intervening in the market by selling gold to support the demand for US dollars needed for imports.
"Our reserves are about US$370 million. The central bank has been intervening in the market and has been able to sell the gold backing the ZiG to supply the market with much-needed US dollars for importation purposes," Prof Ncube said.
He assured that Zimbabwe's reserves are sufficient to back the currency in circulation, stressing that the exchange rate and gold reserves are separate elements but crucial for the country's monetary stability.
As negotiations continue, civil servants and workers in both the public and private sectors are expected to see wage adjustments that align with the current economic environment.
Speaking on the sidelines of President Mnangagwa's State of the Nation Address, Prof Ncube confirmed that negotiations are already underway within the Tripartite Negotiating Forum (TNF), which brings together government, labor, and business representatives.
"Yes, we have to, I think we have to. We are looking into it and we are already negotiating through the Tripartite Negotiating Forum to adjust the wages of civil servants. Hopefully, we will reach an agreement soon and then we can move forward and assist the civil servants," he said.
Prof Ncube assured that the wage adjustments would take place before the end of the year, aiming to restore the buying power of civil servants, who have been affected by inflation and exchange rate fluctuations.
Addressing Currency Adjustments and Wage Impact
The minister acknowledged the impact of currency adjustments on wages across both the public and private sectors. He emphasized the government's commitment to ensuring wage increases to protect workers' livelihoods in the face of rising costs.
"Wages have to be adjusted both in the public sector and private sector to improve the buying power of wages for workers. That is what happens when a currency is adjusted—it causes those other negative impacts. But there are also positive impacts on the business front. We are determined to save jobs in our formal economy," he added.
Tackling the Black Market
On addressing the resurgence of the black market for foreign exchange, Prof Ncube stated that corrective measures are being planned, in line with President Mnangagwa's call for action during his address. However, he remained tight-lipped on the specifics, noting that revealing too much would undermine the government's strategy.
"Yes, we are looking at additional measures to deal with the parallel market. I cannot pronounce what form these will take, and I also don't want to announce when action will be taken," he said.
Gold-Backed ZiG Currency
Addressing the issue of whether the ZiG is backed by gold, Prof Ncube confirmed that Zimbabwe's reserves are indeed backed by gold, although the exchange rate itself is not fixed to the value of gold. He explained that the central bank has been intervening in the market by selling gold to support the demand for US dollars needed for imports.
"Our reserves are about US$370 million. The central bank has been intervening in the market and has been able to sell the gold backing the ZiG to supply the market with much-needed US dollars for importation purposes," Prof Ncube said.
He assured that Zimbabwe's reserves are sufficient to back the currency in circulation, stressing that the exchange rate and gold reserves are separate elements but crucial for the country's monetary stability.
As negotiations continue, civil servants and workers in both the public and private sectors are expected to see wage adjustments that align with the current economic environment.
Source - The Herald
