The Supreme Court has ruled that all debts incurred prior to the removal of the 1:1 peg on the US dollar and the RTGS dollar shall now be settled in the local currency on a one to one basis.
On 20 February 2019, the Zimbabwe Government announced the removal of the 1:1 peg, allowing for a free float of the de facto local currency.
The latest judgement was made this Tuesday by Chief Justice Luke Malaba following an appeal against a High Court judgement by Zambezi Gas Zimbabwe.
The court’s decision has received mixed reactions from both the general public and business. Those owed have complained about the issue of value loss as they lended in US dollars, but are now set to receive their dues in Zimbabwe dollars, which has devalued significantly over the past 11 months.
On the hand debtors have praised the move as they are set to repay loans that were accrued in US dollars in a weaker currency.
Individuals and corporates who were owed millions of money at the time have also felt short-changed when government completely abandoned the multi-currency regime later in the year to settle for the fast depreciating local currency.