What you need to know about SI142 of 2019

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What you need to know about SI142 of 2019

Statutory Instrument 142 (SI142) of 2019 was introduced in June to replace the multicurrency system that has been in place since February 2009.

What it entails:

Introduction of Zimbabwe dollar (Zimdollar)

Abolition of the multi-currency system

Bond notes and coins, as well as electronic currency, are all now designated as Zimbabwe dollar and no-longer RTGS dollars

Domestic Nostro Foreign currency accounts to be used strictly for foreign payments and shall continue to be funded from offshore

Individuals can still withdraw or deposit foreign currency from their Nostro Foreign currency accounts

Funds in the Nostro FCA can only be liquidated to the bank in exchange for local currency in cases where the account holder intends to transact locally

NGOs, Embassies and International Organisation are allowed to settle domestic transactions in foreign currency through their inter Nostro FCA transfers

NGOs, Embassies and International Organisations are allowed to pay their employee salaries in foreign currency into an individual employee’s individual Nostro FCA.

NGOs, Embassies and International Organisations are also allowed to withdraw foreign currency from their Nostro FCAs

Tourism players can receive payments in foreign currency from foreign tourists, but they are not allowed to local suppliers of goods and services in foreign currency

Disbursements of Remittances

Disbursement of international remittances (from Western Union, Mukuru, Homelink etc.) shall continue to be in foreign currency to the beneficiary however the beneficiary can also choose to receive the remittances in local currency at the prevailing interbank rate.

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