By Dumisani Ndlovu
Finance Minister Mthuli Ncube has announced plans to adjust civil servants’ salaries to mitigate the effects of the Zimbabwe Gold (ZiG) devaluation. This move aims to cushion public workers and citizens from the economic impact.
“Putting in place a flexible exchange rate or devaluation does have an impact immediately on incomes, on prices,” Ncube said. “And for us as a government, we will make some adjustments, naturally, to civil service salaries to make sure that the purchasing power of the salaries is somewhat restored.”
The Reserve Bank of Zimbabwe recently introduced monetary policy changes to address exchange rate pressures. Ncube emphasized the government’s commitment to macroeconomic stability.
“The idea really is to make sure that we deal with the issue of macroeconomic stability, and that’s what the Zimbabwe government has been working on,” he added.
Ncube also explained the central bank’s measures to narrow the gap between the parallel and official markets, discourage speculative demand, and increase reserve requirements for loans.
