RBZ reaffirms ZiG's legitimacy amid expiration concerns

By Nyashadzashe Ndoro

Chief Reporter

The Reserve Bank of Zimbabwe has reaffirmed the Zimbabwe Gold currency (ZiG) as legal tender, contradicting renowned lawyer Thabani Mpofu's assertions that its supporting legislation has expired.

Mpofu argued that the Presidential Powers (Temporary Measures) Regulations of 2024, which established ZiG, automatically lapsed on October 4, 2024, rendering the currency null and void. He cited the six-month validity period of statutory instruments promulgated under the Presidential Powers Act.

"Further, the statutory instrument having lapsed no further regulations identical to the lapsed ones can be promulgated within six (6) months of such lapse. This means that no statutory Instrument extending the life of ZIG can be issued in terms of the Presidential Powers Act,” Mpofu said.

However, the RBZ maintains that currency reform measures introduced through such regulations do not lapse with the instrument's expiration. Instead, they require another legal instrument to revoke them. The Finance Act, gazetted into law, acknowledges but does not validate the provisions of S.I 60 of 2024.

"The Zimbabwe Gold currency, (ZiG) was established through Presidential Powers (Temporary Measures) proclaimed under S.I 60 of 2024, which constitutes a one- time act of currency reform," the RBZ stated.

"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.

"Meanwhile, it should be noted that The Finance Act which has since been gazetted into law, simply declares the provisions of S.1 60 of 2024 and is not meant to validate them.

"Thus, ZiG remains the country's legal tender, and the Reserve Bank will continue to consolidate its use and stability."

Launched in April 2024, ZiG replaced the ZWL and is backed by foreign exchange reserves and precious metals. Initially valued at 13.6 ZiG per US dollar, it has lost nearly 80% of its value on the black market

YOU MIGHT ALSO LIKE

RBZ reaffirms ZiG's legit...

10/29/2024