Mixed reaction to Zimbabwe's foreign currency ban

The decision by the Zimbabwean government to abolish the use of foreign currency for local transactions is welcome, but could have been implemented better. That's the view of analysts and various sectors of the business community. As previously reported in Legalbrief Today, foreign currencies are no longer acceptable as legal tender in Zimbabwe, with Finance Minister Mthuli Ncube saying the Zimbabwe dollar is now the only acceptable medium of exchange for local transactions. This effectively sidelines the multiple currency regime that Zimbabwe has been using alongside the bond notes and the recently introduced RTGS$ currency. A Fin24 report notes that some said what government had done was not consistent with promises it had been making in recent months. 'The feeling is that there is lack of trust between the authorities and business,' said Zimbabwe National Chamber of Commerce CEO Christopher Mugaga. 'We had a meeting a fortnight ago with the Reserve Bank governor, and at no point did he ever try to hint the pending introduction of a new currency. So that’s a dishonest engagement with business because what it means is that our proposals were ignored, so there is mistrust,' Mugaga said. The Confederation of Zimbabwe Retailers is urging its members to embrace the new measures 'as these will further improve competitiveness'.