HARARE – The Reserve Bank of Zimbabwe (RBZ) has denied claims by renowned lawyer Thabani Mpofu the ZiG has ceased to become legal tender owing to the lapse of statutes that operationalised it.

Mpofu threw the cat among the pigeons at the weekend when he claimed the circulation of the country’s newest currency was now illegal.

He argued the time span prescribed in statutes that gave life to the local currency has since lapsed.

The lawyer said on social media the ZiG came through a statutory instrument promulgated in terms of the Presidential Powers Act whose effect lapsed at the end of 6 months.

“The ZIG was operationalised by the promulgation of the Presidential Powers (Temporary Measures) (Amendment of Reserve Bank of Zimbabwe Act and Issue of Zimbabwe Gold Notes and Coins) Regulations, 2024.

“By law, a statutory instrument promulgated in terms of the Presidential Powers Act lapses at the end of 6 months unless prior to its lapse, the instrument is validated by primary legislation,” he said.

Mpofu said the 6 months lapsed on 4 October 2024, meaning “the ZIG ceased to be currency.”

He said it was not possible for the statutory instrument once it has lapsed to be validated by legislation.

However, in a Monday statement, the central bank insisted there was no legal gap on the gold-backed currency.

“The Reserve Bank of Zimbabwe wishes to advise the public and all stakeholders that there is no gap at law regarding the Zimbabwe Gold currency,” said the RBZ through its corporate affairs department.

“The Zimbabwe Gold currency, (ZiG) was established through Presidential Powers (Temporary Measures) proclaimed under S.I 60 of 2024, which constitutes a one-time act of currency reform.

“Currency reform measures by their nature do not lapse simply because the instrument that introduced the reforms has lapsed.

“The lapsing of the Presidential Temporary Powers that established the currency does not, therefore, create a gap in the law. Legally, currency reform measures are only revoked by another legal instrument.”

“Meanwhile”, added RBZ, “it should be noted that The Finance Act which has since been gazetted into law, simply declares the provisions of S.I 60 of 2024 and is not meant to validate them.

“Thus, ZiG remains the country’s legal tender, and the Reserve Bank will continue to consolidate its use and stability.”

Questions around the legality of the ZiG could further add to the battered image of a currency that has largely been rejected by businesses and ordinary citizens because of its continually fluctuating value.

The situation could also give excuses for businesses to reject use of the currency citing the status of its legality.