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Government, RBZ appeal ruling on foreign currency accounts

Government and the Reserve Bank of Zimbabwe are set to appeal this week’s High Court ruling that the RBZ exchange control directive converting sums in accounts originally designated in US dollars into Zimbabwe dollar denominated accounts, is unconstitutional.

Reserve Bank of Zimbabwe Governor Dr John Mangudya (left) makes an address during the mid-term monetary policy presentation in Harare as Minister of Finance and Economic Development, Professor Mthuli Ncube listens
Reserve Bank of Zimbabwe Governor Dr John Mangudya (left) makes an address during the mid-term monetary policy presentation in Harare as Minister of Finance and Economic Development, Professor Mthuli Ncube listens

In the ruling, the High Court ordered a bank to pay a particular holder of such an account in foreign currency within seven days.

But in a statement dated May 15, Finance and Economic Development Minister Professor Mthuli Ncube said Government and the RBZ do not agree with the conclusion in the judgment suggesting that the exchange control directive is unconstitutional.

He said Government and the RBZ take view that the High Court failed to give a proper interpretation of the directive.

“In the circumstances, Government and the Reserve Bank intend to file an appeal against the judgment,” said Prof Ncube.

He added that Government and the RBZ are further fortified in this course of action by the fact that the High Court did not impugn the provisions of the Finance (No. 2) Act, 2019 and the amendments made to the Reserve Bank of Zimbabwe Act (Chapter 22:15), which were based on the exchange control directive in question.

Accordingly, Government and the RBZ have assured the nation that the monetary arrangements put in place as a result of the exchange control directive in question remain in place pending the outcome of the appeal to be “noted in the next few days”.

The High Court ruling came after business partners – Ms Penelope Douglas Stone and Mr Richard Harold Stuart Beatie, represented by Mr Tendai Biti – took CABS, RBZ and the Ministry of Finance to court over US$142 000 deposited in its business account. The Herald

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