Opposition political party leader, Linda Masarira, has filed an application with the High Court to compel the Reserve Bank of Zimbabwe (RBZ) to address the acute foreign currency shortages and improve public access to foreign exchange.
Masarira, the leader of the Labour, Economists, and African Democrats (LEAD) political party, is requesting that the High Court order the central bank to declare the current regulatory framework burdensome and illegally restrictive.
She seeks to ensure that individuals can obtain foreign exchange through official channels within 30 days of the court order.
Through her lawyer, Obey Shava of the Zimbabwe Lawyers for Human Rights (ZLHR), Masarira applied to the High Court on June 19, 2024. She protests the widespread practice of quoting and selling goods and services exclusively in foreign currency, primarily US dollars.
“Masarira asked the High Court to declare the practice of levying goods and services exclusively in foreign currency a violation of people’s right to the protection and benefit of the law,” ZLHR said in a statement.
In her application, Masarira argued that despite the multi-currency regime in place since 2009, and reinstated by Statutory Instrument 218 of 2023, the Presidential Powers (Temporary Measures) (Amendment of Exchange Control Act) Regulations, 2023 (effective until December 2030), the majority of domestic transactions are conducted in US dollars. This contributes to the scarcity of US dollars in the market.
Masarira pointed out that fuel retailers sell fuel in US dollars and some goods and services, such as passport fees, are charged exclusively in foreign currency.
“Masarira argued that the current legal framework for trading foreign currency infringes upon people’s right to access foreign currency,” said ZLHR.
ZLHR further stated that Masarira reasoned the current legal framework places people who do not have easy access to foreign currency in a precarious position, as goods and services priced exclusively in foreign currency are effectively out of reach due to the currency shortage.
Masarira noted it is concerning how only a privileged few can purchase foreign currency at the auction system launched in 2020, with no provision for ordinary citizens to purchase foreign currency.
“Masarira argued that currently, the RBZ prioritizes access to foreign currency by importers with verifiable foreign invoices, with little consideration given to people who require smaller amounts of foreign currency for everyday purchases,” said the human rights lawyers.
“The LEAD political party leader wants the High Court to order the RBZ to declare that the existing regulatory framework is overly restrictive and unlawfully hinders people from accessing foreign currency. She also wants the central bank to facilitate easy and formal access to foreign currency by the public.”
Masarira also wants the High Court to order the central bank to expand willing buyer-willing seller trading arrangements, allowing herself and the general public to access foreign currency through banks or bureaux de changes within 30 days of the court order.
“She also wants the RBZ to be ordered to expand the Operational Guidelines for Authorized Dealers with Limited Authority-Money Transfer Agencies and Bureaux de Change to permit herself and the general public to access foreign currency through banks and bureaux de change within 30 days of the court order,” said ZLHR.
According to the politician, the RBZ should be ordered to adopt measures such as collaboration with mobile money operators and agents to enhance seamless public access to foreign currency within 30 days of the court order.
Enterprises and service providers in Zimbabwe must also be compelled to provide dual pricing for all products and services, allowing people to purchase commodities in the currency of their choice, Masarira charges in her application.
