Dollar Shortage Forces Zimbabwe to Delay Military Pay
- Finance Ministry blames revenue shortage, cash-flow challenges
- Military to be paid June 27, compared with normal June 12 date
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Zimbabwe is delaying salary payments to army and air force personnel by two weeks because of cash shortages at the Finance Ministry, as an economic crisis deepens in the southern African nation.
President Robert Mugabe’s administration took the decision because of a worsening shortage of dollar notes in recent months. Since abandoning its own currency in 2009 to end hyperinflation, Zimbabwe has used mainly U.S. dollars, as well as South African rand, euros, and British pounds. The government spends about 83 percent of its revenue on wages for state workers, according to Finance Minister Patrick Chinamasa.