Workers have slammed Finance and Economic Development Minister Mthuli Ncube’s announcement that he would set up a currency stabilisation task force and also introduce a managed floating rate system.
Zimbabwe Congress of Trade Unions (ZCTU) secretary-general, Japhet Moyo argued that the value of the Zimbabwe dollar will likely plummet, resulting in inflation and the erosion of workers’ purchasing power. He said:
What the introduction of a managed floating exchange rate system means is that the cartels who have the foreign currency in Zimbabwe will decide to sell at a rate they deem fit and this can escalate to 50, 100 or even 200.
Businesses need foreign currency in order for them to import commodities, and if the rate to purchase foreign currency goes up, the prices of basic goods will also go up.
As we all know, this will result in the further erosion of salaries … and workers will continue suffering.
Moyo called for the scrapping of the Zimbabwe dollar and the return of the multi-currency regime or better still the adoption of the rand.
Former Finance Minister Mthuli Ncube told the Daily News that the parallel rate will hit 1:100 in just a few weeks and this will prove that Mthuli Ncube has failed.
More: Daily News