ZCTU blasts RBZ over devaluation of ZiG

The Zimbabwe Congress of Trade Unions (ZCTU) has lambasted the Reserve Bank of Zimbabwe for unilaterally devaluing the Zimbabwean Gold (ZiG) currency without considering its implications on workers and ordinary citizens.

In a statement issued on Tuesday, October 1, ZCTU Acting Secretary General Kudakwashe Munengiwa said the ZiG has been devalued by over 44 percent.

He pointed out that the devaluation has reduced workers’ earnings, leaving them financially compromised, taking into account that shops charge double prices for ZiG transactions.

Munengiwa accused the government of dragging its feet or unwillingness to engage with workers and businesses through the Tripartite Negotiating Forum, in violation of Section 13(2) of the Constitution, which mandates the government to involve citizens in development plans that affect them.

“We would like to note that RBZ has been taking people for granted for quite some time now when introducing a new currency.

“When it introduced the bond notes in 2016 RBZ claimed that the bond notes were adequately backed by lines of credit from Afreximbank and that the 1:1 exchange rate between the USD and RTGS$ were also backed by adequate lines of credit.

“Lately, they also claimed that the ZiG was adequately backed by gold. These all have proved to be false guarantees as the local currency could not hold against the USD and other foreign currencies,” he said.

Munengiwa called on employers to pay a substantial portion of wages in USD to support workers.

He also urged the government to establish a minimum wage in USD to protect vulnerable workers and ensure fair compensation to combat poverty and reduce inequality, including gender disparities.