Back to Index
This article participates on the following special index pages:
Sunrise of currency reform - Index of articles and reports on Zimbabwe's new currency reforms
powers invoked validating changes
August 01, 2006
PRESIDENTIAL powers have
been invoked to give immediate effect to the currency reforms announced
have have to make these laws permanent within the next six months.
used his special temporary powers to promulgate the Presidential
Powers (Temporary Measures) (Currency Revaluation) Regulations 2006
- which were published in an extraordinary Government Gazette yesterday.
Under the regulations,
old bearer cheques in circulation expire at midnight on August 21
2006 and the Reserve Bank cannot pay anyone out on these after that
cannot accept or exchange old bearer cheques, after that deadline
although traders or parastatals can still exchange them before the
close of normal business hours on the August 22, 2006. This allows
them to accept customers- money right up to the deadline. Banks
have to exchange currency, within the limits, at exactly $1 000
old currency for $1 new currency.
in more than $5 billion (or such other amounts as the Reserve Bank
may specify by notice to financial institutions generally,) or individuals
bringing in more than $100 million (or such other specified amount
must have a tax clearance certificate and declaration of source.
This also applies if there are two or more amounts of old bearer
cheques exceeding these limits brought in within seven consecutive
Banks have to
issue one-year currency stabilisation bonds for any sum in excess
of the limits and then report within 48 hours to the Bank Use Promotion
and Suppression of Money Laundering Unit, which will inquire into
the source of the cash.
If the cash is
found to be proceeds of detainable offence, it will be confiscated
and dealt with in accordance with Bank Use Promotion and Suppression
of Money Laundering Act and the bond will be cancelled.
If the money is
not illegal, the bond will be redeemed on maturity for its face
value together with interest at the monthly average rate for Treasury
Bills calculated from the month of issue.
compel traders, parastatals, financial institutions engaged in sale
of goods and services to have their systems confirm with the new
monetary arrangements and any exemption will be granted if the authorities
are satisfied that such an exemption will be in the public interest
and promotes the objective of the smooth transition from the old
to the new currency system.
As a result of
the changes, firms shall be required to make two sets of financial
statements for accounting, taxation and other purposes.
The first six
months will be reflecting the old currency while the last six months
will show the new currency system. Firms should first seek authority
Please credit www.kubatana.net if you make use of material from this website.
This work is licensed under a Creative Commons License unless stated otherwise.