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Mnangagwa okays US dollar use

by Staff reporter
31 Mar 2020 at 15:08hrs | Views
PRESIDENT Emmerson Mnangagwa has gazetted Statutory Instrument 85/20, which will allow citizens and businesses to charge goods and services using the United States (US) dollar as part of combating the spread of coronavirus (Covid-19).

This comes after the Reserve Bank of Zimbabwe (RBZ) governor John Mangudya last week re-introduced the US dollar, barely a year after adopting the Zimbabwe dollar as the sole currency of trade.

The Zimbabwe dollar had been abandoned in February 2009 after it had become worthless due to hyperinflation.

Through an extra-ordinary Government Gazette issued out on Sunday, Mnangagwa, regularised Mangudya's announcement, allowing people to pay for goods and services using "free funds", which include money lawfully held and earned in foreign currency by any person.

"It is hereby notified that His Excellency the president, in terms of Section 2 of the Exchange Control Act (Chapter 22:05), has made the following regulations: these regulations may be cited as the Exchange Control (Exclusive Use of Zimbabwe Dollar for Domestic Transactions) (Amendment) Regulations, 2020 (No.2), the Exchange Control (Exclusive Use of Zimbabwe Dollar for Domestic Transactions) Regulations, 2019, published in Statutory Instrument 212 of 2019, is amended by the insertion of the following Section after Section 5.

"In terms of the Statutory Instrument, people are allowed to pay for goods and services chargeable in Zimbabwe dollars, using foreign currency at the prevailing rate on the date of payment.

"The payment envisaged in Subsection (2) may be done electronically through a foreign currency account or in cash or through any electronic payment," the Government Gazette reads.

promote social distancing, as banks will be able to provide digital financial services to their customers, that include producers of gold, tobacco and cotton, and recipients of diaspora remittances," Mangudya said last week.

Source - dailynews

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