KEY POINTS
- RBZ confirms ZWG currency’s legal stability.
- Legal challenges dismissed as misinterpretations by the RBZ.
- The Finance Act solidifies ZWG as official Zimbabwean currency.
The Reserve Bank of Zimbabwe (RBZ) has provided the public with an assurance that the legal authority of the Zimbabwe Gold (ZWG) currency cannot be questioned by aggressiveness in denying earlier legal findings that raised doubts about it.
This statement follows allegations made by reputable attorney Advocate Thabani Mpofu that the ZWG’s validity is in question because the statutory instrument (SI) supporting the currency has expired.
Legal challenge sparks central bank response
The dispute started when Advocate Mpofu’s legal interpretation, which was extensively disseminated on social media, implied that S.I. 60 of 2024, which created the ZWG, had run out of its six-month validity on October 4, 2024.
He claimed that it would be against the Presidential Powers Act to reissue or prolong the legislative instrument after it had expired. Mpofu asserts that extending the instrument in the absence of a new SI may subject the currency to legal challenges, raising doubts about its long-term viability.
The RBZ issued a statement in response, rejecting these allegations as misunderstandings. The central bank stated that currency reform measures do not expire just because the instrument that introduced them has, and that the Zimbabwe Gold Currency, established under Presidential Powers (Temporary Measures), is secure under S.I. 60 of 2024.
RBZ supported that agreement even though S.I. 60 might have elapsed, it does not in any way affect the legal status of the ZWG. Concerning the measures taken in connection with counterfeit money they said that such reforms are legal and are effective as long as they are not repealed or amended by another legal act.
Assurances on the currency’s stability
The Finance Act of 2024, which formally included the provisions of S.I. 10 of 2024, was cited by RBZ to further enhance trust.
According to New Zimbabwe, they clarified that the purpose of this Act was to formally define the parameters of the currency within Zimbabwe’s financial system, not to revalidate it as some had proposed.
The central bank claims that the Finance Act establishes the ZWG as a standing official and guarantees the preservation of its legal tender status.
The RBZ statement went on to say, “This Act solidifies ZWG’s position as a fundamental element of our monetary system.” “The Reserve Bank will keep working to maintain ZWG’s stability and encourage public trust in its application.”
Additionally, the central bank dispelled concerns that the currency would be revoked, stating that such modifications would necessitate a proper legal procedure, which has not occurred.
Moving forward with Zimbabwe gold
Considering the Zimbabwe is still at an effort to find an economic stability, the action by the central bank seems to be one more word to calm down the public.
The RBZ highlighted the importance of currency in their broader agenda towards fostering more financial development as well as stability Murinditi and ZWG play a large and significant economic part in Zimbabwe.
In light of concerns regarding the legal process underlying the new currency, the RBZ’s assurance is meant to bolster public and investor trust in it.
