ZIG Ceased To Be Legal Tender On 04 October - Top Lawyer
The Zimbabwe Gold (ZiG) currency is no longer considered legal tender, as the law governing it lapsed on October 4, according to top lawyer Advocate Thabani Mpofu.
Introduced on April 5, 2024, the gold-backed currency was the country’s sixth attempt to establish a stable monetary system in the past 15 years.
Mpofu said on Saturday that the ZiG has officially lost its status as legal tender, leaving questions about the implications for the economy and the future of currency in Zimbabwe. Mpofu posted on X:
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 and Coins) Regulations, 2024.
By law, a statutory instrument promulgated in terms of the Presidential Powers Act lapses at the end of 6 months unless prior to its lapse, the instrument is validated by primary legislation.
In this case, the 6 months would have lapsed on the 4th of October 2024. This means that by the end of that day, the ZIG ceased to be currency.
It is not possible for the statutory instrument once it has lapsed to be validated by legislation. Further, the statutory instrument having lapsed no further regulations identical to the lapsed ones can be promulgated within 6 months of such lapse.
This means that no Statutory Instrument extending the life of ZIG can be issued in terms of the Presidential Powers Act.
For these reasons, the ZIG is no longer legal tender. The consequences are immense. I think we have a big problem on our hands. (I sincerely hope for the life of me that the authorities did the needful. If they didn’t, this needs to be fixed by the only lawful way available).
Former Finance Minister Tendai Biti agreed with Advocate Mpofu that the ZiG is no longer legal tender. He said:
Advocate Thabani Mpofu is 100% correct. ZiG is no longer a currency because the six months have lapsed.
So, Parliament must amend the the Reserve Bank of Zimbabwe Act for the ZiG to become a currency not the President.
According to NewsDay, the government has been working on new legislation to support the introduction of the ZiG, anticipating the lapse of the statutory instrument after six months. The Finance Bill H.B. 8, 2024, amends existing laws to facilitate the introduction of the ZiG.
The Bill states that ZiG notes and coins will be recognized as official currency under section 44D (2) of the Principal Act.
It passed through the Senate about two weeks ago and now awaits President Emmerson Mnangagwa’s signature to become law.
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