Zim dollar bounces back as government outlaws multi-currency system

The Chronicle

Business Reporter

GOVERNMENT has outlawed the use of multiple currencies through new regulations that compel all forms of transacting to be done in local currency, now formally known as Zimbabwe dollar.

Through Statutory Instrument (SI) 142 of 2019, known as Reserve Bank of Zimbabwe (Legal Tender) Regulations, the Government abolished the use of British pound, United States dollar, South African rand, Botswana pula and any other foreign currencies, as legal tender.

Prior to the latest development, Zimbabwe used a basket of currencies collectively referred to as the multicurrency system, which was adopted in 2009 when the country scrapped its domestic currency.

Until today (Monday) payments in Zimbabwe could be made in any of the approved currencies that included the US dollar, British pound, South African rand, Botswana pula and RTGS dollar.

“Accordingly, the Zimbabwe dollar, with effect from 24th June, 2019, but subject to subsection 3, be the sole legal tender in Zimbabwe in all transactions,” Statutory Instrument 142 says.

The new Zimbabwe dollar will have same boundaries, extent in space, time, or meaning as the RTGS dollars, which entails all bond notes and approved forms of electronic money in Zimbabwe.

“For the avoidance of doubt, it is declared that references to the Zimbabwe dollar are conterminous with references to the following;

“The bond notes and coins referred to in section 44B, the electronic currency prescribed for purposes of section 44C of the Act, that is to say the RTGS dollar.

“The above mentioned bond notes and RTGS dollars 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 100th  part of a RTGS dollar is equivalent to a Zimbabwean cent.”