adminTawanda Musarurwa
Statutory bodies in the aviation sector — the Civil Aviation Authority of Zimbabwe and National Handling Services (NHS) — say Statutory Instrument 33 of 2019 has affected their ability to raise foreign currency.
The statutory instrument was promulgated to give effect to currency changes announced in the Reserve Bank of Zimbabwe (RBZ)’s Monetary Policy Statement earlier in February.
SI-33 of 2019, also known as the Presidential Powers (Temporary Measures) (Amendment of Reserve Bank of Zimbabwe Act and Issue of Real Time Gross Settlement Electronic Dollars (RTGS Dollars) Regulations, 2019 prescribes “that every enactment in which an amount is expressed in United States dollars shall, on the and after effective date, be construed as reference to the RTGS dollar, at parity with the United States dollar, that is to say, at a one-to-one rate.”
The effect on the SI on aviation players such as NHS and the CAAZ is that it has empowered foreign airlines to pay their fees and obligations to these bodies in RTGS$ instead of US dollars.
And it’s on a 1:1 basis.
Lamented NHS acting general manager Godknows Marawanyika:
“One of our biggest challenges is payment of charges and fees in RTGS$ by foreign airlines citing SI-33 of 2019 on currency reforms.”
RBZ governor Dr John Mangudya’s February 20 Monetary Policy Statement, amongst other measures, announced the following: dollar balances held in local FCA bank accounts and mobile payment platforms, as well as bond notes and coins, would no longer be regarded as equal in value to United States dollars.
He also said local dollar electronic balances and bond notes and coins would become ‘RTGS dollars’, part of Zimbabwe’s multi-currency system and trading at an exchange rate fixed by market forces.
The MPS also announced the introduction of an inter-bank market would be established for trading RTGS dollars with foreign currencies on a willing-seller willing-buyer basis.
And it also stated that RTGS$ will be used by everyone, including Government, for pricing goods and services, recording debts, accounting and settling domestic transactions.
This would eliminate the system whereby goods and services are priced and charged in foreign currency or in both local and foreign currency.
CAAZ acting director general Mrs Margaret Mandizha mirrored the NHS boss’ sentiments, although indicating that the SI could be reviewed by the fourth quarter of this year.
“The challenge emanates from SI-33 of 2019 which was promulgated recently. It has had an impact on the authority’s revenue and expenditure.
“The impact is such that the SI talks to organisations such as ours whose fees are set by statute, those that make payments on the 1:1 basis.
“Now the fees of the authority are charged in US dollars. The international aircraft that come into the country we charge our services in US dollars, but the SI said we need to charge on a 1:1 basis,” she said.
“With an airline such as Emirates for example that flies global routes, we charge it hypothetically, say $200 000 a month, they will then choose to give us RTGS$200 000 instead of US$200 000.
“So that has had a negative impact on the authority.
“But I’m glad to say that we have sought interventions and we have been given temporary waiver up to October this year, and we believe that by then changes to the SI, which will be favourable to organisations such as ourselves.”
Online Reporter