The government of Zimbabwe announced through the Government Gazette released last Friday that it had put forward Finance Bill No. 3, 2019, an amendment to several monetary Acts which among other things penalises the re-dollarisation of the economy.
The Bill comes after Zimbabwe, through Statutory Instrument (SI) 142, 2019 outlawed the use of all foreign currencies on domestic transactions leaving the Zimbabwe dollar as the only legal tender in the country.
The statement reads:
This clause incorporates the provisions of the Presidential Powers (Temporary Measures) (Amendment of Exchange Control Act) Regulations 2019. Among other things that the latter measure amended the Exchange Control Act by adding to section 2 of the Act the following ground upon which the President may make regulations: (d) The enforcement of the exclusive use of Zimbabwe dollar for domestic transactions.
Additionally, a civil penalty framework was inserted in the Exchange Control Act to enable the sanctioning of attempts to re-dollarisation the economy by means of civil penalties administered by the Reserve bank of Zimbabwe rather than the criminal punishments administered by the police and the NPA.
There have been calls from the economists for Zimbabwe to readopt the use of a strong currency or currencies as a way to alleviate the soaring inflation.
More: News Day