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Presidential Powers Temporary Measures Currency Revaluation and Issue of New Currency Regulations 2008(Statutory Instrument 109 of 2008)

Statutory Instrument 109 of 2008

Presidential Powers Temporary Measures Currency Revaluation and Issue of New Currency Regulations 2008

ARRANGEMENT OF SECTIONS

Section

  1. Issue of new currency, saving in force of certain coins and bearer cheques at revalued rate and expiry of old bearer cheques.
  2. Rounding-off of converted sums.
  3. Operation of financial institutions, traders etc., to conform to new currency system.
  4. Temporary indication of prices for goods and services in both currency systems.
  5. Cheques and other negotiable instruments.
  6. Effect of conversion to new currency system on debts, contracts, securities, etc.
  7. References to old currency system in enactments.
  8. Immunity where official powers or functions exercised in good faith.
  9. Issue of directions for purposes of these regulations.
  10. Regulations to bind the State.
  11. Amendment of Cap. 9:23.
  12. Amendment of Cap. 24:24.

First Schedule : Design Form and Material of Banknotes.

Second Schedule Standard Composition and Mass of Ten and Twenty-Five Dollar Coins Third Schedule: Rounding-Off of Converted Sums.

Fourth Schedule: Indication of Prices for Goods and Services in both Currency Systems.

Fifth Schedule: Words or Letters to be Endorsed by Drawers on All Cheques Drawn on and Between the 1st August, 2008, and 31st August, 2008.

HIS Excellency the President, in terms of section 2 of the Presidential Powers (Temporary Measures) Act [Chapter 10:20], hereby makes the following regulations:—

                                                                                                   1.   Title

These regulations may be cited as the Presidential Powers (Temporary Measures) (Currency Revaluation and Issue of New Currency) Regulations, 2008.

                                                                                            2.   Interpretation

(1) In these regulations—

“billion” means a thousand million;

“cash” means Zimbabwean coins and banknotes that are currently designated as legal tender, and includes any Reserve Bank bearer cheques issued in terms of section 42A of the Reserve Bank of Zimbabwe Act [Chapter 22:15];

“cheque” means a cheque (other than a Reserve Bank bearer cheque) as defined in section 72 of the Bills of Exchange Act [Chapter 14:02];

“cheque in transit”, for the purposes of section 7(2)(a), means a cheque— (a)          in the process of being cleared between two financial institutions; and

(b) that is stamped by one of the financial institutions on presentation with a date not later than the 1st August, 2008;

“contract” includes—

  • an agreement for the settlement of a delictual claim; and
  • an employment contract; and
  • a contract for the sale, letting or hire of immovable property; and
  • a sale effected in any shop in the ordinary course of the business of such shop, or any other consumer contract for the sale or supply of goods or services or both in which the seller or supplier is dealing in the course of business and the purchaser or user is not; and
  • a policy, as defined in the Insurance Act [Chapter 24:07]; and
  • a pension scheme or arrangement;

“currency” means the coin and paper money of Zimbabwe including Reserve Bank bearer cheques;

“customer”, in relation to a financial institution, means a person who operates an account with that financial in-

stitution;

“debt”, without limiting the meaning of the term includes anything which may be sued for or claimed by reason of an obligation arising from statute, contract, delict or otherwise;

“negotiable instrument” means any bill of exchange other than a cheque, whether negotiable or not, which has been drawn or issued either inside or outside Zimbabwe and is intended to enable any person to obtain, either directly or indirectly, any sum of money, whether in Zimbabwean or foreign currency and includes— (a) a letter of credit or draft;

  • a negotiable certificate of deposit;
  • a banker’s acceptance,
  • a promissory note;
  • a postal order, money order or traveller’s cheque;
  • any order or authorisation, whether in writing by electronic means, or otherwise to a financial institution to credit or debit any account;

“Minister” means the Minister responsible for finance;

“new currency system” means the currency system brought into force in Zimbabwe in accordance with these regulations on and after the 1st August 2008;

“old bearer cheque” means a Reserve Bank bearer cheque issued before the 1st August, 2008;

“old currency system” means the currency system in force in Zimbabwe immediately prior to the 1st August, 2008;

“pension scheme or arrangement” means any scheme or arrangement established or operating in Zimbabwe the principal object of which is to provide benefits for persons who are or have been members of the scheme or arrangement upon their retirement on account of age or ill-health or other termination of service or on attaining a specified age, whether or not such scheme or arrangement also provides for the payment of benefits in other circumstances, or for dependants or nominees of deceased members;

“Reserve Bank” means the Reserve Bank of Zimbabwe referred to in section 4 of the Reserve sank of Zimbabwe Act [Chapter 22:15];

“Reserve Bank bearer cheque” means a cheque payable to bearer issued in terms of section 42A of the Reserve Bank of Zimbabwe Act [Chapter 22:15] and includes Special Agro Cheques;

“revalued currency” means the coins referred to in section 3(3) and the Reserve Bank bearer cheques referred to in section 3(8);

“security” means any of the following—

  • shares, stocks, bonds, debentures and debenture stock;
  • units under a unit trust scheme;
  • a renounceable letter of allotment or a letter of rights;
  • a warrant conferring an option to acquire, or a deposit certificate in respect of, any thing referred to in paragraphs (a) to (c);

but does not include a cheque or negotiable instrument;

“trade documentation” means any record of information whatsoever used in connection with the sale or proposed sale of goods or services to a consumer thereof, including— (a)    an invoice;

  • a receipt;
  • a bill of lading;
  • a price tag or label;
  • any coupon, stamp, ticket or voucher;
  • a written estimate or quotation of a price, charge or fee;
  • any broker’s note, share certificate or other document evidencing title to a security;

“unexpired old bearer cheque” includes a Reserve Bank bearer cheque whose expiry was postponed to the 31st July, 2008, by Statutory Instrument 204 of 2007 and Statutory Instrument 214 of 2007, or whose expiry date was fixed as 30 June, 2008.

(2) Any word or expression to which a meaning has been assigned by the Bank Use Promotion and Suppression of Money Laundering Act [Chapter 24:24] shall have the same meaning when used in these regulations.

3.                                                                 Issue of new currency, saving in force of certain coins and bearer cheques at revalued rate and expiry of old bearer cheques

(1) With effect from the 1st August, 2008, there shall be issued new banknotes in the following denominations— (a) one dollar; and

  • five dollars; and
  • ten dollars; and
  • twenty dollars; and
  • one hundred dollars; and
  • five hundred dollars which shall be deemed to have been issued in terms of section 40(1) of the Reserve Bank of Zimbabwe Act [Chapter 22 15]

(2) With effect from the 1st August 2008, there shall be issued new coins in the following denominations— (a) ten dollars, and

(b) twenty-five dollars; which shall be deemed to have been issued in terms of section 43(1) of the Reserve Bank of Zimbabwe Act [Chapter 22:15].

(3) With effect from the 1st August, 2008, the following coins—

  • the ten cent coin; and
  • the twenty cent coin; and
  • the fifty cent coin; and
  • the one-dollar coin; and (e) the two dollar coin; and

(f) the five dollar coin; made and issued by the Reserve Bank under section 43(1) of the Reserve Bank of Zimbabwe Act [Chapter 22:15] and whose denominations, designs, forms and material were, pursuant to section 43(5) of that Act, determined by the President in the Reserve Bank of Zimbabwe (Issue of Coins) Notice, 2001, published in Statutory Instrument 111 of

2001, and the Reserve Bank of Zimbabwe (Issue of Five Dollar Coin) Notice, 2001, published in Statutory Instrument 267 of 2001, shall remain in force at their face value and shall circulate alongside the banknotes and coins referred to in subsections (1) and (2).

(4) The design of the banknotes referred to in subsection (1) are as follows— (a) in the case of the one dollar banknote—

  • on the front the dominant feature is the logo of the Reserve Bank of Zimbabwe (three balancing rocks), with the value in words and an ornament;
  • on the back there is an impression of the Victoria Falls and a Buffalo; (b) in the case of the five dollar banknote—
  • on the front the dominant feature is the logo of the Reserve Bank of Zimbabwe (three balancing rocks), with the value in words and an ornament;
  • on the back there is an impression of the Kariba Dam Wall and an Elephant; (c) in the case of the ten dollar banknote—
  • on the front the dominant feature is the logo of the Reserve Bank of Zimbabwe (three balancing rocks), with the value in words and an ornament;
  • on the back there is an impression of a tractor in the field and grain silos; (d) in the case of the twenty dollar banknote—
  • on the front the dominant feature is the logo of the Reserve Bank of Zimbabwe (three balancing rocks), with the value in words and an ornament;
  • on the back there is an impression of a coal pile and a miner, working underground; (e) in the case of the one hundred dollar banknote—
  • on the front the dominant feature is the logo of the Reserve Bank of Zimbabwe (three balancing rocks), with the value in words and an ornament;
  • on the back there is the impression of Great Zimbabwe with a view of the walls surrounding the Conical Tower;

(f) in the case of the five hundred dollar banknote—

  • on the front side the dominant feature shall be the logo of the Reserve Bank of Zimbabwe (three balancing rocks), with the value in words and an ornament;
  • on the back side there shall be the impression of Dairy cows and an Ox head.
  • The design, form and material of the banknotes shall be as specified in the First Schedule.
  • The design of the coins referred to in subsection (2) is as follows—

(a) on the obverse side, an impression of the Zimbabwe bird looking to the left, and around it is the inscription “ZIMBABWE” with the year of manufacture; and (b) on the reverse side—.

  • in the case of the ten dollar coin, an impression of a buffalo,
  • in the case of the twenty-five dollar coin, an impression of the Tomb of the Unknown Soldier; and
  • the diameter and thickness—
    • of the ten dollar coin is 21,5 mm and 1,85 mm respectively;
    • of the twenty-five dollar coin is 24,5 mm and 2 mm respectively; and
  • the edge of—
    • the ten dollar coin is milled;
    • the twenty-five dollar coin consists of five equally spaced milled areas (“interrupted milling”).
  • The standard composition and standard mass of each coin referred to in subsection (2) and the remedy or variation from the standard composition and standard mass which is allowed in the making of coins shall be as specified in the Second Schedule.
  • Subject to subsections (9), (10) and (11), with effect from the 1st August, 2008, every unexpired old bearer cheque in circulation and issued by the Reserve Bank under section 42A of the Reserve Bank of Zimbabwe Act [Chapter 22:15], shall continue to be legal tender at the revalued rate specified in subsection 8, alongside the banknotes and coins referred to in subsection (1), (2) and (3).
  • With effect from the 1st August, 2008, to the 31st January, 2009, every financial institution shall accept old bearer cheques at the rate of ten billion dollars of the old bearer cheque for one dollar of the new currency system.
  • Every old bearer cheque shall expire at 2400 hours on the 31st January, 2009, and financial institutions shall not, on and after that date, accept any old bearer cheques: Provided that—
  • a financial institution shall accept from its customers who are traders or parastatals old bearer cheques before the close of normal business hours on the 2nd February 2009;
  • the Reserve Bank shall continue to make payment to holders of old bearer cheques up to the 31st March, 2009.
  • All deposit balances at a financial institution that are denominated in terms of the old currency system on the 1st August, 2008, are automatically converted in accordance with the new currency system.
  • For all accounting and other purposes that require a set of financial results for the period of twelve months beginning on the 1st January, 2008, or any other period of twelve months constituting the financial year of the accounting entity during which the new currency is being introduced, the final balances determined in the statements shall be expressed in terms of the new currency system.
  • No financial institution shall impose any fee, commission or other charge whatsoever in respect of the conversion from the old currency system to the new in terms of subsection (9) or (11).
  • Any financial institution which contravenes subsection (9), (10), (11)or ( l3) or accounting entity which contravenes subsection (12) shall be guilty of an offence and liable to a fine of any amount up to or exceeding level fourteen.

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