daniel chigunwe
Ray Bande in Mutare
THE Government is aware of the limited supply of the ZiG currency on the market and even though more will be availed in the near future, the country’s monetary authorities remain cautious in their approach in order not to fuel instability in the market, the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, has said.
Fielding questions from stakeholders in attendance during the opening of the Mutare post budget breakfast meeting and investment conference in Mutare yesterday, Minister Ncube said more cash in local currency will be availed, albeit cautiously.
“Our domestic currency, the ZiG, basically exists in two forms. It is in the form of notes and coins which is cash and then in electronic form which is what you have in your phones. There is more ZiG in electronic form than in cash.
“We designed it that way because as Government we were concerned about feeding the parallel market. If we have more cash on the market, we make it easy for those who are selling money on street corners and cause challenges in the stability of the exchange rate.
“At the same time, we were keen to increase the currency in circulation in the form of cash. Going forward you will see more cash in circulation”.
Minister Ncube also responded to questions on why Government departments are taking too long to pay for goods and services rendered, saying some departments are over contracting thereby failing to pay in time.
“Our Government departments tend to over contract beyond the budgeted amounts. Of course contractors also give pressure saying I can provide this and that other service. The issue of over contracting partly explains the delays in disbursements of payments to contractors. There is over contracting beyond what the Government contracts through ZIMRA for payment obligations,” he said.
Minister Ncube said the Government was s happy to be awarding competitive salaries to it’s workers, which are now better than most salaries that are being given in the private sector.
“We care about our civil servants. That is one of our priority areas. Colleagues, we now have a situation whereby Government is doing better in paying its workers than the private sector,” he said.
Online Reporter