Zimbabwe lawyers take Mugabe to court over bond notes law

Follow 9News Nigeria On Social Media

President Robert Mugabe addresses to his supporters during an election rally in Chitungwiza, Zimbabwe , file. REUTERS/Philimon Bulawayo/File Photo
Social sharing

HARARE (Reuters) – Zimbabwean human rights lawyers asked the High Court on Tuesday to strike down a decree by President Robert Mugabe allowing the introduction of “bond notes”, which have raised fears of a return to a local currency.

Mugabe used his presidential powers on Oct. 31 to amend the Reserve Bank of Zimbabwe Act, designating bond notes as legal tender that will be equivalent to the U.S. dollar.

Zimbabwe scrapped its own currency in 2009 after inflation hit 500 billion percent, wiping out savings.

The central bank says bond notes are meant to ease crippling cash shortages, but this is stoking concerns it could open the door to rampant printing of cash, as happened in 2008.

In a court application, the Zimbabwe Lawyers for Human Rights {ZLHR) asked the court to set aside Mugabe’s decree arguing that the veteran leader had no authority to do so.

ZLHR lawyer Dzimbahwe Chimbga said presidential powers were only used in emergencies and the bond notes law was not an emergency since the government first announced their introduction in May this year.

“He usurped the powers of parliament by making himself the lawmaker and in any event the Presidential Powers Act does not allow him to act in a manner that he did,” Chimbga said.

READ ALSO  Nigeria's "Oil Curse": 'Paradox of Plenty' or 'Poverty of Paradox'?

The High Court is expected to hear the case this week.

Zimbabwean banks are limiting daily withdrawals to between $40 and $100 due to cash shortages, which has also seen some firms struggle to repatriate dividends and pay foreign debts.

Memories are still fresh of the hyperinflation considered by the International Monetary Fund as the worst for any country not at war.

The crisis led to the release of the 100 trillion dollar Zimbabwean dollar note – the single largest known bill to be printed by any central bank. Shoppers carried stacks of money in plastic bags as prices changed several times daily.

The introduction of the U.S. dollar as the official currency in 2009 halted the sky-high and accelerating inflation.

(Reporting by MacDonald Dzirutwe; Editing by Tom Heneghan)

 

Leave your comment on this post

THE ROTTEN FISH: CAN OF WORMS OPENED OF APC & TINUBU'S GOVERNMENT OVER NIGERIA'S ECONOMIC DOWNTURN

WATCH THE CRITICAL ANALYSIS AND KNOW THE RESPONSIBLE PARTIES TO BLAME FOR NIGERIA'S ECONOMIC CHALLENGES, WHILE CITIZENS ENDURE SEVERE HARDSHIPS.

Watch this episode of ISSUES IN THE NEWS on 9News Nigeria featuring Peter Obi's Special Adviser, Dr Katch Ononuju, 9News Nigeria Publisher, Obinna Ejianya and Tinubu Support Group Leader, McHezekiah Eherechi

READ ALSO  Nigeria's "Oil Curse": 'Paradox of Plenty' or 'Poverty of Paradox'?

The economic crisis and hardship in Nigeria are parts of the discussion.


Watch, leave your comments, and share to create more awareness on this issue.


#9NewsNigeria #Nigeria #issuesInTheNews #politics #tinubu THE ROTTEN FISH: CAN OF WORMS OPENED ...
DON'T FORGET TO SUBSCRIBE AND LEAVE YOUR COMMENTS FOR SUBSEQUENT UPDATES
#9newsnigeria #economia #economy #nigeria #government @9newsng
www.9newsng.com

Leave your comment

Click on the link below or Scan the QR Code to join the 9News Nigeria WhatsApp Channel

9News Nigeria Investigative Reports WhatsApp Channel
9News Nigeria Investigative Reports WhatsApp Channel
About 9News Nigeria 13308 Articles
9News Nigeria is Nigeria's favourite news source. For Authentic, Unbiased News on Politics, Business, Sports, Technology, Entertainment and Lifestyles, Health, Nollywood, Crime and Investigations, Family and Relationships, Inspirations .. and much more. For Latest News from Africa and around the world, 9News Nigeria is your best source. WhatsApp +2348115805632 Email: info@9newsng.com Facebook: www.facebook.com/9NewsNG | Twitter/Instagram: @9newsng

Be the first to comment

Leave your comment