RBZ Explains Why The ZIG Is Still A Legal Tender Despite Passing Expiry Date

The RBZ has responded to recent claims questioning the Zimbabwe Gold Currency’s (ZiG) legal validity, emphasizing that the currency’s legal status remains firmly intact and compliant with existing statutes.

Concerns were raised over the weekend when a respected legal professional, Advocate Thabani Mpofu, shared his legal perspective on the status of the ZWG, which quickly went viral.Mpofu contended that the currency, created through a specific statutory measure, had reached the end of its permitted six-month period on October 4, 2024, effectively voiding the statutory instrument that established it. He further argued that any extension of the currency’s life would violate the law without active legislation to sustain it.

RBZ’s Clarification on the Currency’s Legal Foundation

In a detailed statement issued today, the RBZ categorically rejected these assertions, maintaining that the currency reform measures underpinning the ZWG remain valid despite the expiration of the original statutory instrument.

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According to the RBZ, the Zimbabwe Gold Currency (ZIG) was instituted under the Presidential Powers (Temporary Measures) with Statutory Instrument 60 of 2024, establishing a one-time currency reform initiative.

“Currency reform measures, once introduced, do not automatically lapse with the expiration of the statutory instrument. The legal provisions that created the currency remain in force until expressly repealed by a subsequent legal instrument”

Legal Implications and the Role of the Finance Act

The RBZ clarified that the Finance Act, which has recently been enacted, incorporates the provisions of the original statutory instrument, SI 10 of 2024, ensuring that the ZWG’s legitimacy as a legal tender remains solid. The Act is not intended to “revalidate” the currency but to confirm its continuity under Zimbabwean law.

The central bank also emphasized its commitment to maintaining the ZiG as the official legal tender. They are preserving the currency’s stability and acceptance within the national economy.

RBZ’s Commitment to Currency Stability

The RBZ’s reassurance reinforces the ZiG’s standing as a reliable and stable legal tender. The RBZ aims to enhance public confidence in the ZiG by addressing these concerns head-on. They want to fortify the financial ecosystem that supports Zimbabwe’s economy.

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The RBZ concluded its statement by reiterating that the currency reform measures, once enacted, do not cease simply because the statutory tool that introduced them has reached its stipulated end date. The ZiG remains fully supported by the RBZ and retains its status as Zimbabwe’s official currency.

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The post RBZ Explains Why The ZIG Is Still A Legal Tender Despite Passing Expiry Date appeared first on iHarare News.

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