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The Employers Confederation of Zimbabwe (EMCOZ) says it is unrealistic to expect all employers to pay their workers in foreign currency (forex).
EMCOZ president, Israel Murefu said some employers have a higher foreign currency generating capacity in the form of US dollars by virtue of being exporters while others generate all their revenue in Zimbabwe dollars.
Speaking to NewZimbabwe.com Business on Thursday, Murefu said it is up to the employer to decide to pay a proportion of salaries in forex if they are able to do so. He said:
<blockquote>So, their US dollar trades are not as high or as significant as the trades in Zimbabwean dollars. Therefore, it is up to each employer depending on their capacity to decide to pay a proportion of salaries in US dollars if they have got the foreign currency.</blockquote>
This comes after the Zimbabwe Congress of Trade Unions (ZCTU) has declared a deadlock at the Tripartite Negotiation Forum (TNF) over the matter and urged workers to stage lunch hour protests at their workplaces to demand salaries in forex.
Murefu, however, dismissed claims that there has been a deadlock at the TNF over the US dollar salary issue, calling it a difference of opinion.
<h4>More: <a href="https://www.newzimbabwe.com/employers-group-rejects-us-dollar-wage-demands/" rel="noopener noreferrer" target="_blank">NewZimbabwe.com</a></h4>

Pindula News

Employers Say They Cannot Pay Wages In Forex

The Employers Confederation of Zimbabwe (EMCOZ) has commended the government for its decision to pay allowances for its workers in foreign currency but said not all private sector players are able to pay employees USD salaries.
EMCOZ president Israel Murefu said the organisation will not force employers to pay their workers in foreign currency as some of them are generating revenue in local currency. Murefu said:
<blockquote>Each organisation will do what is feasible within its own operations. For example, if an entity is earning their revenue in foreign currency, we have no problem if they also pay their employees in forex, but if they are generating revenue in local currency it will be a problem because there is no market where you can buy forex to pay employees.
We have some players who were already paying in forex before Government made its announcement. This is not anything new, but we are saying employers will not be forced to pay their workers in forex. They will have to pay in the currency they are comfortable with or in the currency in which they generate revenue.</blockquote>
On Wednesday the government announced a flat non-taxable COVID-19 allowance of US$75 for civil servants and increased their salaries by 50 per cent while pensioners who retired from the civil service will also get a flat non-taxable COVID-19 allowance of US$30 per month.
However, Public Service Commission (PSC) Secretary Jonathan Wutawunashe, said the foreign currency allowances will not be disbursed in notes form but civil servants will use their Nostro bank account electronic cards to swipe for their purchased items at points of sale.
<h4>More: <a href="https://www.chronicle.co.zw/private-sector-ready-to-pay-forex-salaries-government-hailed-over-remuneration/" rel="noopener noreferrer" target="_blank">Chronicle</a></h4>

Private Sector 'Cannot' Pay Forex Salaries

Business and Labour leaders on Thursday told President Emmerson Mnangagwa to dump the Zimbabwe dollar by mid-year if it continues to devalue as has been happening since its re-introduction seven months ago.
Employers Confederation of Zimbabwe (EMCOZ) president Israel Murefu addressed the <a href="https://www.pindula.co.zw/POLAD_(Political_Actors_Dialogue)" rel="noopener noreferrer" target="_blank">Political Actors Dialogue (POLAD)</a> Economic Summit at the HICC in Harare yesterday. He said:
<blockquote>Currency has to store value, and in all honesty, the local currency cannot be said to be a store of value.
The currency tends to move in one direction that is downwards. A normal currency must fluctuate — move up or down depending on supply and demand aspects in the economy.
We need to stabilise the currency and if we fail to do so by mid-year or end of the year we have to look at an alternative currency.</blockquote>
Also speaking at the event, <a href="https://www.pindula.co.zw/Zimbabwe_Stock_Exchange" rel="noopener noreferrer" target="_blank">Zimbabwe Stock Exchange</a> chief executive Justin Bono said the Zimbabwe dollar is scaring away investors due to its volatility.
Meanwhile, Apex Council chairperson <a href="https://www.pindula.co.zw/Cecilia_Alexander" rel="noopener noreferrer" target="_blank">Cecilia Alexander</a> told President Mnangagwa and his POLAD colleagues that the market has re-dollarised yet civil servants were still being paid in local currency and this could lead to the collapse of social systems.
<h4>More: <a href="https://www.newsday.co.zw/2020/02/mnangagwa-comes-face-to-face-with-reality/" rel="noopener noreferrer" target="_blank">NewsDay</a></h4>

Moment Of Truth: ED Told To Dump Zim Dollar & Look For Alternative Currency

Zimbabwe generated close to US$5 billion from exports between January and September this year alone, a <a href="https://www.pindula.co.zw/Government%20officials" rel="noopener noreferrer" target="_blank">government official</a> has said.
Speaking at the Employers’ Confederation of Zimbabwe (Emcoz) annual congress in<a href="https://www.pindula.co.zw/Bulawayo" rel="noopener noreferrer" target="_blank"> Bulawayo</a> on Thursday, Industry and Commerce Minister, <a href="https://www.pindula.co.zw/Mangaliso_Ndlovu" rel="noopener noreferrer" target="_blank">Mangaliso Ndlovu</a>, said that Zimbabwe, with its 16 million citizens, generates more than Kenya which has a population of 48 million. He said:
<blockquote>When we look at our country the chorus has been that we have inadequate foreign currency.
I think as a nation we need to have dialogue around our usage of foreign currency because we are a very small economy but we are using so much foreign currency.
I don’t understand why. When we look at between January to 6 September this year, foreign currency receipts are close to US$5 billion.
Countries like Kenya generate not more than US$2,5 billion annually but it’s a 48 million population.
What is wrong with Zimbabwe? It then tells us that our foreign currency usage is a problem, that’s something we need to focus on.
But also when we look at our foreign currency receipts, the lowest hanging fruit are exports.</blockquote>
Zimbabwe generates foreign currency mainly from raw materials, that include cash crops such as tobacco and cotton, and minerals such as gold, platinum, diamonds and chrome.
<h4>More: <a href="https://www.chronicle.co.zw/zimbabwe-earns-us5bn-through-exports/" rel="noopener noreferrer" target="_blank">Chronicle</a></h4>

Zim Earned US$5 Billion In 9 Months - Industry Minister

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