‘No going back on Zim-dollar usage’

Prosper Ndlovu, Business Editor

PRESIDENT Mnangagwa yesterday directed all businesses in the country to comply with the new monetary policy regulations as there is no going back on the use of the Zimbabwe dollar for all local transactions.

Addressing local and international business executives at the 2019 ZimTrade Annual Exporters’ Conference in Bulawayo, the President said Government was strengthening its monitoring and compliance systems to buttress the use of local currency.

“In line with our country’s laws, all companies must insist on the use of our local currency for all local transactions,” said President Mnangagwa.

“Going forward, Government will continue to strengthen monitoring and compliance mechanisms.”

The return of the Zimbabwe dollar has become a topical issue among locals and abroad since its re-introduction in June this year, as people seek to gain an understanding of its implications on the economy. In particular, the public has raised concern about the impact of the policy shift on their earnings, spending power and general livelihood. 

Government issued Statutory Instrument (SI) 142 of 2019, which abolished the multicurrency system and designated the Zimbabwe dollar as the sole currency in the country with effect from 24th June 2019.

Under the new regulations, bond notes and coins as well as electronic currency have been designated as Zimbabwe dollar. The law, however, maintains domestic nostro-foreign currency for effecting foreign payments as well as maintains import duty or Value Added Tax for luxuries in foreign currency.

The policy measures also entail that economic agents can hold foreign currency in nostro-accounts and free funds as before but will need to change the foreign currency in local banks and bureaux de change into local currency for domestic transactions. Individuals and corporates can, however, make foreign payments using funds in their FCAs. Also, citizens can still receive remittances sent as foreign exchange through registered money transfer agencies.