Govt scraps multi-currency system

Tendai Matunhu

The Government has with immediate effect scrapped off the use of multi-currency in the country and has introduced the Zimbabwean dollar as the sole currency as prescribed in Statutory Instrument 142 of 2019.

The Statutory Instrument read, “The Ministry of Finance and Economic Development has in terms on section 64 as read with section 44A of the Reserve Bank of Zimbabwe Act (Chapter 22:15) made the following regulations.

Zimbabwe dollar to be the sole currency for legal tender purposes. With effect from the 24th June 2019 the British pound, United States dollar, South African rand, Botswana pula and any other foreign currency whatsoever shall no longer be legal tender alongside the Zimbabwe dollar in any transactions in Zimbabwe.

Accordingly, the Zimbabwe dollar shall with effect from the 24th June 2019, but subject to be the sole legal tender in Zimbabwe in all transactions.

For the avoidance of doubt it is declared that references to the Zimbabwe dollar are coterminouswith references to the following and to no other forms of legal tender of currency; the bond note and coins referred to in section 44B of the Act and the electronic currency prescribed for the purposes of section 44C of the Act, that is to say to the RTGS dollar.

The abovementioned bond notes and RTGS are at par with the Zimbabwe dollar, that is to say each bond note unit and each RTGS dollar is equivalent to a Zimbabwe dollar and each hundredth part of a bond note unit each hundredth part of a RTGS dollar is equivalent to a Zimbabwean cent.

References to the currency of Zimbabwe shall with effect from 24 June 2019, be construed as references to the form of legal tender and the electronic currency with which the term ‘Zimbabwe dollar’ is.”

The Ministry assures Zimbabweans that, “The opening or operation of currency designated accounts, otherwise known as ‘Nostro FCA accounts’, which shall continue to be designated in the foreign currencies with which they are opened and in which they are operated, nor the making of foreign payments from such accounts.

“The requirement to pay in any of the foreign currencies referred to duties of customs in terms of Customs and Excise Act (Chapter 23:02) that are payable on the importation of goods specified under that Act to be luxury good, or in respect of such goods, to pay any import or value added tax in any of the foreign currencies referred to as required by or under the value Added Tax Act (Chapter 23:12).”