The Zimbabwean government has reiterated that the Zimbabwean dollar remains the sole legal tender in the country, and no entity can charge exclusively in foreign currency without special exemption.
This follows several instances of local authorities, government departments and organizations openly disregarding this directive by either issuing notices stating foreign currency rates or continuing to charge only in US dollars.
Last week, Harare City Council attempted to switch to collecting rates in US dollars but the government moved quickly to shut down the illegal plan. The government clarified that the Zimbabwean dollar is the only legal currency unless specifically allowed by law.
In a statement, the Ministry of Finance and Economic Development said charging exclusively in foreign currency not only contravenes the law but also goes against government policy. The ministry reminded all government agencies and local authorities to comply with the directive immediately.
According to the ministry, only transactions excluded under the Exchange Control (Exclusive Use of Zimbabwe Dollar for Domestic Transactions) Regulations of 2019 can be billed in foreign currency. Rates charged by local authorities and fees for government services are not included in those exceptions.
The government remains committed to promoting the use of the local currency for domestic transactions, which began in 2019 when the Zimbabwean dollar was reintroduced.
