Lawyers take Mugabe to court over bond notes

Zimbabwean human rights lawyers asked the High Court yesterday to strike down a decree by President Robert Mugabe allowing the introduction of "bond notes", which have raised fears of a return to a local currency- Reuters news agency reports.

Mugabe used his presidential powers on 31 October to amend the Reserve Bank of Zimbabwe Act, designating bond notes as legal tender that will be equivalent to the US dollar.

Zimbabwe scrapped its own currency in 2009 after inflation hit 500 billion percent, wiping out savings.

The central bank says bond notes are meant to ease crippling cash shortages, but this is stoking concerns it could open the door to rampant printing of cash, as happened in 2008.

In a court application, the Zimbabwe Lawyers for Human Rights asked the court to set aside Mugabe's decree arguing that the veteran leader had no authority to do so.

ZLHR lawyer Dzimbahwe Chimbga said presidential powers were only used in emergencies and the bond notes law was not an emergency since the government first announced their introduction in May this year.

"He usurped the powers of parliament by making himself the lawmaker and in any event the Presidential Powers Act does not allow him to act in a manner that he did," Chimbga said.

The High Court is expected to hear the case this week.

The introduction of bond notes has been postponed several times but  recent reports said they will be released at the end of this month.

There have been reports that fake bond notes are already in circulation.

See also:

Zimbabwe says bond notes are an anti-money laundering tool

It’s not the bond notes- Zimbabweans just don’t trust the government and the banks

UK says it cannot interfere with Zimbabwe’s decision to introduce bond notes

Foreigners ditch Zimbabwe equities over bond notes

MDC-T says US dollar will disappear once Zimbabwe introduces bond notes

Mugabe clears way for bond notes

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