CIVIL servants have reportedly found means to sell their Nostro US Dollars on the parallel market, CashTalk reports.
This comes amid rising runaway inflation which has left the government employed workers with no choice but to sell the money on the black market.
On the black market, they say, the rates are more reasonable than the interbank rate.
Civil servants have been receiving the USD75 payout which landed into the Nostro Accounts.
The need by civil servants for having their Nostro US dollars as US dollar cash has created an opportunity for moneychangers on the black market. Now moneychangers are buying Nostro US dollars at a discount with US dollar cash. Currently the discount is between 6% and 8%.
“You might wonder how the deal is done. Well, if a civil servant wants US$50 cash, for instance, they send 554 Nostro US dollars to the moneychanger if the discount rate is 8%. And if they want US5100 cash, they send 5106 Nostro US dollars to a moneychanger if the discount rate is 8%.
“Therefore, according to these deals, the 575 Nostro US dollar civil allowance is actually worth around US$69 cash on the black market. And also the pensioners 530 Nostro US dollar allowance is worth around US527 cash on the black market,” read the report.
When this USD75 payout was announced, responding to questions from journalists, Finance minister Professor Mthuli Ncube said the money was not obtainable as cashfrom the banks fearing the cash would eventually find its way to the black market.