Staff Reporter
Government has nullified the controversial decision, by the Citizens Coalition for Change (CCC)-led Bulawayo City Council (BCC), demanding that residents pay 80 percent of their rates exclusively in foreign currency.
The decision, which stirred discontent, has been declared illegal by the Permanent Secretary in the Ministry of Finance, Economic Development, and Investment Promotion, George Guvamatanga.
In a statement yesterday, Guvamatanga expressed his concern, stating that the BCC’s resolution contradicts the Government's established policy on the use of a dual currency system.
“The policy allows the transacting public the freedom to choose any currency within the official basket, including the local unit,” Guvamatanga said.
The Permanent Secretary further conveyed that communication had been dispatched to the Ministry of Local Government and Public Works to instruct the BCC to promptly rescind its decision.
While the Government encourages the use of the local currency, Guvamatanga clarified that its departments and agencies must promote its adoption.
He emphasised Treasury's alignment with the Government's stance, citing Statutory Instrument 33 of 2019 that officially reintroduced the Zimbabwean dollar as a legal tender.
Moreover, Guvamatanga highlighted that any local authority exclusively charging and billing in United States dollars was violating established laws.
Yesterday in Bulawayo, residents voiced their concern and urged the Government to intervene and reverse the BCC’s decision.
The residents argued that such a move would disproportionately burden the public, particularly considering that the majority of them earn their income in local currency.
This demand, they asserted, would place undue strain on already tight budgets, potentially exacerbating financial difficulties for many households.
Furthermore, residents expressed fear that the BCC's insistence on foreign currency payments could render the local currency practically useless, further destabilising the country’s economic landscape.
Meanwhile, the Government's intervention was applauded by economic analysts who described it as reflecting a desire for pragmatic solutions that would alleviate financial strain on citizens and prevent further erosion of confidence in the local currency.
