Zimbabwe: All Debts Incurred Before 22 Feb 2019 to Be Paid Using 1-1 Rate - Supreme Court

Photo: The Herald
Chief Justice Luke Malaba.
21 January 2020

The Supreme Court Tuesday ruled that all debts incurred before 22 February 2019 be settled using the Zimbabwe on US$1 to Z$1. basis.

The judgment was handed down by Chief Justice Luke Malaba in an appeal against a High Court ruling made by Zambezi Gas Zimbabwe to pay N.R Barber US$3 885 000.

Zambezi Gas was challenging a law suit of US$3 885 000 that the High Court had ordered company to pay N.R Barber regarding a mining contract the latter had carried out at Entuba Coal Mining Concession in Hwange in 2014.

The ruling will see Zambezi Gas paying N.R Barber Z$3 885 000.

On 20 February 2019, the Reserve Bank of Zimbabwe scrapped the official 1:1 peg between the bond note and the US dollar, creating a new parallel currency called the RTGS dollar. Two days later on 22 February, the central bank sold US dollars to banks at the rate of 2.50 RTGS.

Since then the value of the Zimbabwe dollar has been falling against the US$17.17 using the interbank rate and US$23 using black market rates.

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