By Admire Machiwenyika| The FreeZim Congress president Joseph Makamba Busha has filed a High Court application to set aside Statutory Instrument (SI 142) of 2019, that was introduced by the government earlier this year.
Back in February, the Reserve Bank of Zimbabwe Governor John Mangudya during his Monetary Policy Statement that brought to light a complex of measures that saw the introduction of SI 142.
Busha accompanied by his Legal advisor Tichawana Nyahuma filed the application today at the High and the document stated President Emmerson Mnangagwa as the 1st respondent, Finance minister Prof Mthuli Ncube as the 2nd respondent, RBZ Governor Dr John Mangudya and Attorney General Prince Machaya.
“The respondents here are President Mnangagwa, the minister of finance and economic development Prof Ncube, the Reserve Bank Governor and Attorney General and legally they need to respond within 10 days,” challenged Busha.
The outspoken opposition leader went on to challenge the government of Mnangagwa to set aside SI 142 and maintain the basket of currency that are tradable within the Zimbabwean market until Zimbabwe’s industries are able to produce commodities.
“The alternative is they must still keep the basket of currency l believe the Rand and US Dollar must remain until Zimbabwe is able to produce. South Africa is our biggest trading partner and the US dollar is the world reserve currency, currency of choice all our commodities are traded in US dollars, so it will be a basket of tradable currency basically the Rand and the US dollar,” he explained.
Earlier this week the Government according to the Statutory Instruments they have put in place, the dollar balances held in local foreign currency (FCA) bank accounts and mobile payment platforms, as well as bond notes and coins would no longer be regarded at par in terms of value with the US dollars.
The SI 142 of 2019 goes on to state that local dollar electronic balances and bond notes and coins would become “RTGS dollars”, part of Zimbabwe’s multi-currency system and trading at an exchange rate fixed by market forces. An inter-bank market would be established for trading RTGS dollars with foreign currencies on a willing-seller willing-buyer basis.
In addition, the instrument states that RTGS dollars “shall be” used by everyone, including Government, for pricing goods and services, recording debts, accounting and settling domestic transactions. This would eliminate the system whereby goods and services are priced and charged in foreign currency or in both local and foreign currency.