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Technically The USD And Other Forex Are Not Banned

Currency

The news of the moment definitely is that the Zimbabwean Dollar has made a come back of sorts. The come back goes like so: what we were told to call RTGS dollars in February this year, we are now told to call it Zimbabwean Dollar. The real change is that this ‘Zimbabwean Dollar’ is now declared to be the sole legal tender in Zimbabwe effectively moving from the multicurrency regime of the past 10 years.

So is it against the law to hold the USD?

Well, the answer to that is no. The authorities are still encouraging you to open the so called nostro accounts to keep any forex you have. I do not hesitate to advise you against such. The flip flop in something as basic as the name of the currency itself should tell all of us not to trust the said authorities.

Legal tender simply defined: Coins or banknotes that must be accepted if offered in payment of a debt.

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The ‘new’ Zim dollar being the sole legal tender means anyone selling goods and services in Zimbabwe is obligated to take your money when you come with the Zim dollar to make payment. This doesn’t mean that you can’t pay in USD if you so wish and the person selling is willing to accept the hard currency just like no one will arrest you for exchanging your goats for other goods and services directly.

This is of course a technicality that the government will not want explored because the whole objective of the regulation is to stop you and I from using any forex we may have to pay for stuff locally.

Whichever way the worst is that you can only keep USD as ‘storage’

Even if we are to interpret the new regulation in the most strict manner, the worst it can mean is that you can keep your USD but you can’t use them to buy stuff in Zimbabwe. Your hard currency will just be a store of value which you convert whenever you want to buy.

Will it work?

No it will not work, simple!


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28 thoughts on “Technically The USD And Other Forex Are Not Banned

  1. Opening a forex account which is subject to Looting/Raiding by Govt!!
    Not a plauseable suggestion/idea.

  2. From travellers cheque to agro cheque…then berriers chheque…then multi ccurrency the bond coinc for change..then bond notes ..here comes rtgs$ now back to zim dollar….and back to hunger and poverty…ya Zim its unpredicted

  3. I think this is good economics , anyone who trades forex online will understand this is how economies work , just like every country ,buy their local currency to purchase their goods , trade

  4. So what happens if I get foreign from the diaspora. Do I get it as hard currency or it is first converted to local currency

  5. So what happens if I get foreign currency from the diaspora. Do I get it as hard currency or it is first converted to local currency.

  6. Problem with us Zimbos too much subbotage to our leadership.Let us embrace our own currency

    1. How can you embrace an illegality. Parliament demonetised the Zimdollar and only parliament can bring it back. You cannot do it through the back door by way of an SI through a minister’s whims.

    2. Speak for yourself…..whose leadership? You’re assuming all readers support this govt? Change that assumption it’s false. A good number do not trust or respect any of them including ALL their appointees reason being their crookedness, theft, corruption and arrogance. If you work for a living you’re most likely not to believe in their twaddle.

      1. The problem with us Zimbos is we remain in election mode well after the election. We sabotage even the best move that is meant to benefit us. We should desist from this very bad practice, denounce only what is bad and support whatever is good regardless of who initiated it. Let us not be used by politicians to hate for the sake of hating. Most well to do countries forget what seperated them before elections and unite for their common good. Be guided

  7. Thanks we must use our Zim dollar in Zimbabwe not foreign current if I bring foreign currency from from other countries I must change them to get zim dollars and buy and pay in Zim dollars simple

  8. Thanks we must use our Zim dollar in Zimbabwe not foreign current if I bring foreign currency from from other countries I must change them to get zim dollars and buy and pay in Zim dollars simple

  9. Good move, US$ was crippling the poor folk, very good move, now the Zim dollar will be highly sought after and gain value, IT WILL WORK, SIMPLE!!!!

  10. I think it’s a very good idea, if we look at every country with a strong economy they only use foreign currency for imports and international transactions. Their own currency is used for mainly local transactions. Except for those superpowers countries like the USA where their currency is on demand everywhere.

  11. It’s a good move for all Zimbabweans. Now the government can use all the forex to import essential commodities to fine tune or oil our beloved country. Welcome to new era.

  12. I think the honourable minister’s step is very good and this my help to improve our economic problems .this could actually hep to lure price hikes

  13. Whilst the project is good, the buy-in from Business and society in general is critical but seems to be missing. Confidence in Banking system has just been murdered.

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