Innocent Sibonginkosi Ncube
A recent legal analysis by Veritas, a renowned think-tank, has revealed that foreign currency has not been legal tender in Zimbabwe since 2019.
This finding has sparked concerns that the government may abruptly discontinue its use.
In 2019, the Exchange Control Act was amended to insert a new section 11, which allows the Reserve Bank to impose fines on offenders who contravene the Act. However, a subsequent amendment in 2022 introduced a new subsection (2a), which permits the settlement of transactions in foreign currency until December 31, 2030.
Despite President Emmerson Mnangagwa’s extension of foreign currency use until 2030, Veritas argues that it is not legal tender. This interpretation has significant implications for Zimbabwe’s de-dollarization efforts.
The introduction of the Zimbabwe Gold (ZiG) currency in April, backed by forex and gold reserves, has been seen as a step towards a stable currency. However, critics argue that it is premature to make ZiG the sole currency, given the fate of its predecessors.
Veritas’ analysis highlights the need for clarity on Zimbabwe’s currency laws to avoid confusion and potential economic disruption. As the government continues its push for de-dollarization, the legal status of foreign currency remains a critical issue.
Zim GBC News©2024