Economic analyst Victor Bhoroma told TimesLIVE companies pricing goods and services in US dollars will cause extreme cases of poverty as most people earn Zimbabwe dollars. This includes the civil service and those employed in the formal sector.
“This is a hardship for all the people who earn in Zimbabwe dollars because they constantly have to find alternative streams of income to make ends meet and support themselves.
“It is a trying time for Zimbabweans because the cost of living is going up, yet incomes are not going up by the same measure,” said Bhoroma.
To boost confidence in the money market as the local currency continues to tumble, the government put in place a multicurrency system for five years. It makes both currencies legal tender for all local transactions.
The government, which pays in Zimbabwe dollars, is the country's biggest employer. Civil servants, health workers and teachers have previously gone on strike, demanding to be paid in US dollars.
TimesLIVE
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Zim government entities, businesses abandon local currency for US dollar
Image: Reuters
As the Zimbabwe dollar continues to lose value amid high inflation, businesses are abandoning the currency and insisting on doing business in US dollars.
Companies such as state-owned Zimbabwe United Passenger Company (Zupco) hiked fares in Zimbabwe dollars and announced they can be paid in the US currency.
Harare City Council said: “Council wishes to advise its valued residents and stakeholders that certain fees chargeable by council are now payable exclusively in US dollars, with effect from September 1.
“The fees exclude all charges that are accessible through the monthly bills — water consumption, sewerage, refuse collection and rates. The above-mentioned charges will remain open to being payable using multicurrency as may be opted by the client.”
Other government departments have followed suit and as schools prepare to open for the third term, the state gave the green light for them to charge fees in US dollars, to the dismay of most parents.
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Economic analyst Victor Bhoroma told TimesLIVE companies pricing goods and services in US dollars will cause extreme cases of poverty as most people earn Zimbabwe dollars. This includes the civil service and those employed in the formal sector.
“This is a hardship for all the people who earn in Zimbabwe dollars because they constantly have to find alternative streams of income to make ends meet and support themselves.
“It is a trying time for Zimbabweans because the cost of living is going up, yet incomes are not going up by the same measure,” said Bhoroma.
To boost confidence in the money market as the local currency continues to tumble, the government put in place a multicurrency system for five years. It makes both currencies legal tender for all local transactions.
The government, which pays in Zimbabwe dollars, is the country's biggest employer. Civil servants, health workers and teachers have previously gone on strike, demanding to be paid in US dollars.
TimesLIVE
Support independent journalism by subscribing to the Sunday Times. Just R20 for the first month.
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