Chamisa's lawyer says ZiG has expired

Nelson Chamisa's lawyer has alleged that Zimbabwe's gold-backed currency, the Zimbabwe Gold (ZiG), introduced in April as a stabilizing alternative to the Zimbabwean dollar, may have lost its status as legal tender after a key statutory instrument lapsed earlier this month.

In a clear case of disinformation, Thabani Mpofu publicly questioned the legality of the currency on X (formerly Twitter), raising concerns that the six-month-old currency has lost its legal foundation.

In a post that quickly gained attention, Chamisa's lawyer pointed to a critical oversight: "The ZIG was operationalised by the promulgation of the Presidential Powers (Temporary Measures) (Amendment of Reserve Bank of Zimbabwe Act and Issue of Zimbabwe Gold Notes and Coins) Regulations, 2024." According to the lawyer, statutory instruments issued under the Presidential Powers Act automatically expire after six months unless reaffirmed by primary legislation. The lawyer claims the expiration date, October 4, 2024, came without necessary legislative validation, rendering ZIG obsolete as of that date.

"ZIG NO LONGER CURRENCY?" the lawyer wrote, before explaining that the lapse prohibits any new, identical regulations from being issued under the Presidential Powers Act within six months. He added, "For these reasons, the ZIG is no longer legal tender. The consequences are immense... This needs to be fixed by the only lawful way available."

This development casts new uncertainty over Zimbabwe's financial stability efforts. The ZIG, which marked Zimbabwe's sixth currency attempt in 15 years, was introduced to counter inflationary pressures following the demonetization of the Zimbabwean dollar. However, the currency has faced several logistical and operational challenges since its rollout, sparking criticism from the public and financial experts.

Government authorities have yet to issue a formal response to the allegations, leaving speculation about the ZIG's future and potential implications for businesses and individuals who rely on the currency. The Reserve Bank of Zimbabwe (RBZ) has been tight-lipped about possible corrective steps, if any, to address the legal lapse or the currency's regulatory foundation. Some analysts suggest that if the statutory lapse is confirmed, the government may urgently need to pass primary legislation to revalidate the ZIG's status as legal tender.

ZIG NO LONGER CURRENCY?

Unless I missed the law when it was promulgated, the ZIG is no longer currency.

The ZIG was operationalised by the promulgation of the Presidential Powers (Temporary Measures) (Amendment of Reserve Bank of Zimbabwe Act and Issue of Zimbabwe Gold Notes… pic.twitter.com/kIn4rTSEDH

— Thabani Mpofu (@adv_fulcrum) October 26, 2024