Use Of Foreign Currency Permissible Until 2024, Finance Ministry Document Reveals
The Ministry of Finance and Economic Development has produced a document outlining the macroeconomic policy measures to support its 5-year de-dollarisation strategy.
The 5-year period is from the year 2020 to the year 2024.
It states that the payment of salaries in foreign currency for expatriates and NGOs shall be permissible from 2020 to 2024 as this is standard practice in many countries.
On the issue of payment of salaries in foreign currency by local companies (e.g. mines) to local employees, the Ministry of Finance has outlined a gradual reduction in the percentage of the salary payable in foreign currency over the 5-year period.
In 2020, up to 50% will be paid in foreign currency at the discretion of the employer, in 2021 – 40%, in 2022 – 30%, in 2023 – 20% while in 2024 only 10% of the salary will be payable in foreign currency, again at the discretion of
the employer.
Treasury has also revealed that during the 5-year de-dollarisation period, all goods and services in the country will be chargeable in local currency and payable in local currency or foreign currency using free funds.
Download the DE-DOLLARISATION ROADMAP Final Document Here in PDF
