The Government has directed the City of Harare to reverse its recent decision to bill residents in United States dollars (USD).
The City of Harare had issued a notice to residents, stating that from July 1, 2023, services would be charged in foreign currency.
In a letter to the permanent secretary of local government and public works, Finance ministry secretary George Guvamatanga said the move which the council said was aimed at preserving value and mitigating against inflation, conflicts with regulations set forth in the country.
“I refer to the above captioned and specifically the notice by the Harare City Council dated 29 June 2023 giving residents of the city notice of billing of rates and other services in the United States dollars with effect from 1 July 2023.
“Under this, in March 2020, the government published SI 85 of 2020 which, in section 2(2) provides that any person with free funds may elect to pay for goods and services chargeable in Zimbabwe dollars, in foreign currency using his or her free funds at the ruling rate on the date of payment.
“The payment, in foreign currency by any person paying for goods and services should be at his/her option unless otherwise exempted and cannot be compelled to pay in foreign currency,” Guvamatanga said.
The government has been working to stabilize the economy and promote the use of the local currency, particularly since the reintroduction of the Zimbabwe dollar in 2019.
Statutory Instrument 85 of 2020 prohibits the use of foreign currency for domestic transactions, except if provided for by the law or if exempted in terms of the Exchange Control Regulations.
