ECONOMIC experts say while the government’s decision to allow US dollar wages in public entities would improve the welfare of their staff, the move could obstruct efforts to promote the use of the Zimdollar (Z$).
It comes as monetary and fiscal authorities have been enforcing a raft of measures to strengthen the local currency, which has been unstable lately.
The Treasury gave the directive through a circular last week after receiving “a lot” of requests from various entities.
It also said it had conceded after observing an increasing number of resignations and loss of motivation due to “poor remuneration”.
The directive, however, limits the amount payable in US dollars to 40 percent of all salaries and allowances.
Economic analyst Eddie Cross said the US dollar wages would entrench the use of the US$ in the economy at a point when the government is preaching de-dollarisation.
Eddie Cross Cross is a former member of Parliament and a member of the RBZ’s Monetary Policy Committee.
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