Top Economist Says US Dollar Salaries A Pipe Dream





TOP economist, Vince Musewe has vehemently dismissed expectations workers bodies for US$ salary payments hinting such a move would be inconsistent with international best practices and instead called salary adjustments in tandem with inflationary pressures.

Several worker’s bodies were highly anticipating a return to the US dollar-denominated salary in the national budget delivered by Finance Minister, Mthuli Ncube recently, prompting many to shoot down the blueprint for failing to award salaries in foreign currency.

But speaking exclusively to NewZimbabwe.com Business, Musewe instead hailed commitments by the Reserve Bank of Zimbabwe (RBZ) which were also confirmed in the blueprint, saying such initiatives will navigate the economy through the current hardships.

He buttressed that priority must be placed on managing inflation and having a stable foreign exchange rate with the US dollar.

“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 maybe a different issue all together,” said Musewe.

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 which have strong exports.

“We can’t all be jumping to take their money. Currently individuals are already receiving their money from the diaspora and the minister mentioned that it is US$1, 5 billion per annum that is coming directly to households and has nothing to do with government.

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

To find the lasting solution, he however called on authorities to increase wages 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.