Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) says the newly introduced ZWG currency remains legal tender as it is sailing well within the parameters of the country’s laws.
The central bank was responding to criticism leveled by top lawyer, Adv Tabani Mpofu who challenged the legality of the new currency.
He argued that the six (6) months lifespan granted by the Statutory Instrument which launched the ZWG expired on the 4th of October 2024, bringing the SI’s life to an end. He said as a result, it was not possible for the statutory instrument once it has lapsed to be validated by legislation.
Mpofu said the statutory instrument having lapsed no further regulations identical to the lapsed ones can be promulgated within six (6) months of such lapse which means that no statutory Instrument extending the life of ZIG can be issued in terms of the Presidential Powers Act.
However, the RBZ clarified the legal position of the new currency which is very well above the legal waters.
“The Zimbabwe Gold Currency, (ZIG) was established through Presidential Powers (temporary Measures) proclaimed under S.I 60 of 2024, which institutes a onetime act of currency reform. Currency reform measures by their nature do not lapse simply because the instrument that introduced the reforms has lapsed.
“The lapsing of the Presidential Temporary Powers that established the currency does not, therefore create a gap in the law. Legally currency reform measures are only revoked by another legal instrument,” said the central bank.
The bank underscored that the Finance Act which has since been gazetted into law, simply declares the provisions of SI 160 of 2024 and is not meant to validate them.
“Thus ZWG remains the country’s legal tender and the Reserve Bank will continue to consolidate its use and stability,” said RBZ.
