On Monday, 24 June 2019, the Minister of Finance Mthuli Ncube issued new currency regulations which effectively ended Zimbabwe’s use of multiple currencies as legal tender. Media reports suggested the new regulations amounted to a ban of foreign currencies. What exactly do the rules say?
By ZimFact Staff
Zimbabwe dollar as sole legal tender
The effect of the Statutory Instrument 142 of 2019 is to designate the Zimbabwe dollar, defined as made up of electronic deposits (RTGS), bond notes and coins, as the sole legal tender for all domestic transactions.
The United States dollar, British pound, South African rand, Botswana pula and any other currency previously designated as legal tender since 2009, will now no longer be considered as such.
Do the new regulations render foreign currency accounts (FCAs) useless?
According to the Government Notice, the new rules do not affect foreign currency accounts.
“Nothing in section 2 (of the regulations) shall affect the opening or operation of foreign currency designated accounts, otherwise known as ‘Nostro FCA accounts’, which shall continue to be designated in the foreign currencies with which they are opened and in which they are operated, nor shall section 2 affect the making of foreign payments from such accounts,” reads the notice.
Is duty still payable in forex?
Import duty on selected goods, payable in foreign currency in terms of Statutory Instrument 252A of November 23, 2018, will continue to be collected in foreign currency.
“Nothing in section 2 (of the regulations) shall affect the requirement to pay in any of the foreign currencies…duties of customs in terms of the Customs and Excise Act that are payable on importation of goods specified under that Act to be luxury goods, or, in respect of such goods, to pay any import or value added tax in any of the foreign currencies.”
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