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RBZ explains why ZiG is still legal tender

Harry October 29, 2024

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

Lawyer Thabani Mpofu, a respected legal expert, raised concerns over the weekend when he shared his legal perspective on the status of ZWG, which quickly went viral. Mpofu claimed that the currency, which was created through a specific legal measure, was due by the end of 2017. The six-month period allowed on October 4, 2024 effectively renders the legal instrument that created it obsolete. He also argued that extending the life of the currency without active legislation to maintain it would violate the law.

Statement from RBZ on the Legal Basis of Currency

In a detailed statement released today, the RBZ categorically rejected these allegations and maintained that the currency reform measures supporting the ZWG remained valid despite the expiration of the original legal document.

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Public Notice – Zimbabwe Gold (ZiG) Legal Status pic.twitter.com/SMQsfemQgw

– Reserve Bank of Zimbabwe (@ReserveBankZIM) 28 October 2024

According to the RBZ, the Zimbabwe Gold Currency (ZIG) was created by Statutory Instrument 60 of 2024, creating a one-time monetary reform initiative under the Presidential Powers (Interim Measures).

“Once monetary reform measures are implemented, they do not automatically end with the expiration of legislation. The legal provisions creating the currency shall remain in effect until expressly repealed by a later legal instrument.”

Legal Implications and the Role of Finance Law

The RBZ explained that the recently enacted Finance Bill incorporates the provisions of the original legal document, SI 10 of 2024, ensuring that the legitimacy of the ZWG as a legal tender remains intact. The law is not intended to “revalidate” the currency but to confirm its continuity under Zimbabwean law.

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

RBZ’s Currency Stability Commitment

RBZ’s assurance strengthens ZiG’s position as a reliable and stable legal tender. RBZ aims to increase public confidence in ZiG by directly addressing these concerns. They want to strengthen the financial ecosystem that supports the Zimbabwean economy.

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The RBZ concluded its statement by reiterating that monetary reform measures do not expire once enacted simply because the legal instrument that introduced them has reached its stipulated end date. ZiG continues to be fully supported by the RBZ and retains its status as the official currency of Zimbabwe.