Govt OKs Use Of Current Interbank Rate On Contracts Concluded Before Introduction Of RTGS$

The Ministry of Information has reported that Cabinet has resolved that the prevailing interbank exchange rates should apply on contracts consummated and denominated in USD prior to the recent Monetary Policy Statement and promulgation of SI 33 OF 2019. The twitter post read:

Cabinet resolved that the prevailing interbank exchange rates should apply on contracts consummated and denominated in USD prior to the recent Monetary Policy Statement and promulgation of SI 33 of 2019

See the post below:

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This would imply that if one owed $100.00, that person now owes $480 if the interbank rate today is 4.8. Effectively, all employers should pay their workers the salaries multiplied by 4.8. Since it is not yet clear whether workers would benefit from this, others who are pessimistic have already expressed their anger on the government for only considering banks. They argue that workers’ salaries were converted to the Real Time Gross Settlement (RTGS) dollar when the government ditched the 1:1 rate and there was no compensation.

Others have also said that the statement would need to be clarified further since “all contracts” would mean loans, contracts of employment, mortgages and many other arrangements made before the quasi-currency, RTGS dollar was introduced in February by the Reserve Bank of Zimbabwe (RBZ).

The policy stance can also have legal consequences as many workers would need to recoup their lost money.

More: Ministry of Information 

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