The local surrogate currency, RTGS Dollar (Inclusive of Bond Notes and Coins) is set to expire in September when the Presidential Powers (Temporary Measures) Act, which gives the President Powers to make regulations, expires.
According to business and economic analyst, Victor Bhoroma, Zimbabwe needs to have local currency before the end of September 2019 since the Act that was used to introduce the currency has a six-month lifespan which ends later this year.
“The Zimbabwean government has indicated that the country will be launching new currency before the end of 2019. The announcement has caused some confusion amongst businesses and the transacting public who operated with an understanding that the RTGS Dollar was now the local currency.
“The key question that arises is on the difference between the RTGS Dollar (Inclusive of Bond Notes and Coins) and the upcoming local currency.
“The introduction of the impending currency is largely necessitated by the fact that the legal instrument used to introduce the RTGS Dollar is temporary with a specific timeline of six months from the day of the proclamation by the office of the President. In principle, therefore, Zimbabwe would need to have local currency before the end of September 2019,” Said Bhoroma.
President Emmerson Mnangagwa recently announced that plans are underway to bring back a local currency as the RTGs Dollar has continued to lose value against the greenback.