Zimbabwe will only introduce bond notes into the economy when the central bank is satisfied with levels of public awareness of the new currency’s features, Finance Minister Patrick Chinamasa has said, adding to the uncertainty surrounding the currency.
President Robert Mugabe yesterday used the Presidential Powers (Temporary Measures) Act to amend the Reserve Bank of Zimbabwe Act to designate the bond notes as legal tender, effectively launching the new currency, which government hopes will ease a biting US dollar bank note shortage.
The currency move has, however, raised fears of a return to a domestic currency abandoned in 2009.
The proclamation meant that government side-stepped Parliament — which would have had to clear the legislation — despite his ZANU-PF party having a two thirds majority.
But Mugabe’s regulations will last for six months, after which Parliament has to ratify or reject them.
Legal experts have questioned the constitutionality of Mugabe’s use of a presidential decree to launch the currency.
“The Presidential Powers (Temporary Measures) Act is patently unconstitutional,” said Alex Magaisa, a lawyer on his Twitter account.
“You can’t amend primary legislation using secondary legislation. The constitution specifically prohibits it. Section 134 of the Constitution makes it clear that making primary legislation is a job for Parliament only.”
Another legal expert, Brian Kagoro agrees.
“In reality the Presidential Powers Temporary measures are an unconstitutional instrument for introducing bond notes,” he said on his Twitter account.
“To use Presidential Powers Temporary measures willy nilly is to usurp the legislative function of parliament.”
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