The finance ministry has drafted a Bill to amend the Reserve Bank of Zimbabwe Act to pave way for the impending introduction of bond notes. This follows President Mugabe’s decree in October amending the Reserve Bank of Zimbabwe Act to designate bond notes as legal tender, which lawyers have said was unconstitutional. The draft bill indicates government is not certain of the legality of the decree.
A 16 November Government Gazette introducing the bill reads:
“This Bill will amend the Reserve Bank of Zimbabwe Act (Chapter 22:15) (No. 5 of 1999) to enable the Reserve Bank, with the leave of the Minister responsible for finance to issue “bond notes” exchangeable at par with the United States dollar on the same basis that it previously issued bond coins.
At the same time, the opportunity is taken to validate the issuance of bond coins currently in circulation, ‘for the avoidance of doubt’