IMPLICATIONS OF USD CIVIL SERVICE SALARY
1) For starters this is a very good move. In the face of a spiking exchange rate and run away inflation, a USD salary is always welcome. Its good for value, its good for sanity in the economy. A few implications of this move.....
1) For starters this is a very good move. In the face of a spiking exchange rate and run away inflation, a USD salary is always welcome. Its good for value, its good for sanity in the economy. A few implications of this move.....
2) To underwrite the monthly wage bill of cUSD$50m for Civil Servants and Pensioners, the Gvt will need to create a USD REVENUE TAX base. Going forward we are likely to see retailers forced to adopt USD fiscalised registers for Gvt to earn VAT is USDollars.
3) With civil servants openning USD Nostro accounts enmass, there is a good business case for retailers to service this segment whilst the Gvt also earns USD Tax. However the bigger impact to the economy will be the entrenchment of a DOLLARISED economy going forward!
4) A 50% increase in civil service wages will further destablise our already precarious Money Supply Position and lead to a depreciating Zim dollar.Eventually the transacting public will opt to tender and receive the USD, leading to eventual DOLLARISATION.
Before our ink could dry on this tweet, we arw proven right! RBZ approves dual pricing for goods and services! 
