The Zimbabwean government's move to pay its workers US dollar-denominated allowances as the southern African country struggles to stabilise its local currency has been described as "crazy" by an economist and member of the central bank's monetary policy committee.
Fin24 previously reported that President Emmerson Mnangagwa's administration had hiked civil servants' salaries in local currency by 50% and also awarded them a US$75 Covid-19 allowance.
Government pensioners will also be paid a flat, non-taxable, Covid-19 allowance of US$30 per month.
Using the parallel market exchange rate of 75, the allowance is more than the US$40 government workers, including teachers and nurses, are currently earning.
In a statement released Wednesday the Ministry of Finance announced that government workers will be paid "a flat, non-taxable, Covid-19 allowance of US$75 per month".
