Reserve Bank of Zimbabwe Amendment Bill, 2016 - HB 12-2016

MEMORANDUM
This Bill will amend the Reserve Bank of Zimbabwe Act [Chapter 22: 15] (No. 5 of 1999) to enable the Reserve Bank, with the leave of the Minister responsible for finance to issue "bond notes" exchangeable at par value with the United States dollar, on the same basis that it previously issued bond coins.
At the same time, the oppottunity is taken to validate the issuance of bond coins currently in circulation, "for the avoidance of doubt".
In more detail the individual clauses of the Bill provide as follows:

Clause 1
This clause sets out the Bill's short title.

Clause 2
This clause defines certain terms used in this Bill; especially noteworthy are the terms "bond note" and "unit of a bond note", meaning a unit ("one dollar'') or multiple thereof in which a bond note is denominated.

Clause 3
This clause will insert in the Reserve Bank of Zimbabwe Act a new section enabling the Minister to prescribe by notice in a statutory instrument that a tender of payment of bond notes and coins issued by the Reserve Bank that are exchangeable at par value with any specified currency other than Zimbabwean currency prescribed as legal tender for the purposes of section 44A of the Act ("Legal tender of foreign currencies'') shall be legal tender in all transactions to the same extent as that prescribed currency.

Clause 4
This clause will statutize the provision for the issuance of bond notes temporarily enacted by the Presidential Powers (temporary Measures) (Amendment of Reserve Bank of Zimbabwe Act and Issue of Bond Notes) Regulations, 2016. It will also validate the issuance of bond coins in circulation before that time.

Note by Veritas: This Bill was gazetted on 16th November 2016, in a Government Gazette Extraordinary.

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