By Staff Reporter
Harare – Prominent lawyer Thabani Mpofu has raised serious concerns about the legal status of the Zimbabwe Gold (ZiG) currency, arguing that its statutory underpinnings have expired.
In a recent social media post, Mpofu contended that the ZiG was introduced through a Presidential Powers Act statutory instrument, which, by law, has a six-month lifespan.
The ZiG was launched in April 2024 as a measure to alleviate Zimbabwe’s persistent currency crisis.
As of October 4, 2024, this period elapsed, rendering the currency’s legal tender status questionable.
“Unless I missed the law when it was promulgated, the ZIG is no longer currency.
“The ZIG was operational used 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,” said Mpofu.
Introduced by the central bank in April this year as a panacea for Zimbabwe’s enduring currency crisis, the ZiG has however, faced significant challenges in its short six-month lifespan.
Despite government pledges to bolster its value, the currency has rapidly depreciated, echoing the fate of its predecessors.
While the government maintains its commitment to the currency, public skepticism grows.
Mpofu’s recent assertion that the ZiG has lost its legal tender status has ignited widespread debate and uncertainty.
As the situation unfolds, it remains to be seen how the government and the Reserve Bank of Zimbabwe will address these concerns and ensure the stability of the nation’s monetary system.
