The High Court has today declared invalid the Reserve Bank of Zimbabwe Exchange Control Directive No. R120/2018, which created FCA "nostro" accounts as distinctive from "RTGS" accounts, as it is unconstitutional.
The ruling comes after Penelope Douglas Stone from The Stone/Beattie Studio took CABS, RBZ and ministry of finance to court over a US$142 000 deposit in its building society's account.
Justice Happias Zhou granted the application on the grounds that the RBZ decision was not legally and morally justified, to change the currency of a bank account by simply renaming it.
The court ordered CABS, the applicants' bankers, to pay The Stone/Beattie Studio US$142,000 which is the amount that they held in their account in 2016 or transfer it into a "nostro" account nominated by the applicants within seven days.