Reserve Bank of Zimbabwe Act
- Commenced on 13 August 1999
- [This is the version of this document from 31 December 2021.]
- [Note: This version of the Act was revised and consolidated by the Law Development Commission of Zimbabwe]
- [Amended by Reserve Bank of Zimbabwe Amendment Act, 2017 (Act 1 of 2017) on 31 October 2016]
- [Amended by Finance (No. 2) Act, 2019 (Act 7 of 2019) on 21 August 2019]
- [Amended by Finance (No. 3) Act, 2019 (Act 13 of 2019) on 31 December 2019]
- [Amended by Finance Act, 2021 (Act 7 of 2021) on 31 December 2021]
Part I – Preliminary
1. Short titleThis Act may be cited as the Reserve Bank of Zimbabwe Act [Chapter 22:15].
2. InterpretationIn this Act—“Bank” means the Reserve Bank of Zimbabwe referred to in section four;“banking business” means the business of accepting deposits of money withdrawable or repayable on demand or after a fixed period or after notice and the employment of those deposits, in whole or in part, by lending or by any other means for the account and at the risk of the person accepting such deposits;“banking institution” means a commercial bank, accepting house, discount house or finance house registered or required to be registered in terms of the Banking Act [Chapter 24:20];“Board” means the Board of the Reserve Bank constituted in terms of section twenty-one;“demand liabilities” means liabilities which, when they are created, are made payable within thirty days or are made subject to less than thirty days’ notice before payment;“Deputy Governor” means a Deputy Governor of the Bank appointed in terms of section fourteen;“director” means a member of the board including the Governor and Deputy Governors;[definition substituted by Act 12 of 2015]“foreign country” means any state or territory outside Zimbabwe;“foreign regulatory authority” means an authority which, in a foreign country, exercises any function corresponding to any regulatory or supervisory function of the Bank in terms of this Act;“Governor” means the Governor of the Bank appointed in terms of section fourteen;“International Monetary Fund” means the International Monetary Fund established under an agreement which was drawn up at the United Nations Monetary and Financial Conference held at Bretton Woods in New Hampshire in the United States of America in July, 1944;“liabilities to the public”, in relation to a banking institution, means all claims, including contingent claims, against that institution which are payable on demand or at a future date;“Minister” means the Minister of Finance and Economic Development or any other Minister to whom the President may, from time to time, assign the administration of this Act;“monetary policy” means the monetary policy formulated in terms of section forty-five;“officer”, in relation to the Bank, includes the Governor, a Deputy Governor and any other employee of the Bank who may be so designated by the Board;“Registrar” means the Registrar of Banking Institutions referred to in of section 4 of the Banking Act [Chapter 24:20];“repealed Act” means the Reserve Bank of Zimbabwe Act [Chapter 22:10];“Reserve Bank bearer cheque” means a cheque payable to bearer issued by the Reserve Bank and specifying a predetermined amount and expiry date thereon.[definition inserted by Act 16 of 2004]“statutory body” means a body corporate established or re-established directly by or under any enactment for special purposes specified in that enactment;“time liabilities” means liabilities which, when they are created, are made payable after thirty days or are made subject to not less than thirty days’ notice before payment.
3. Application of Act to certain institutions
Part II – Reserve Bank of Zimbabwe
4. Continuation of former Reserve BankThe Reserve Bank of Zimbabwe established by the repealed Act shall continue in existence as a body corporate capable of suing and being sued in its own name and, subject to this Act, of performing all acts that bodies corporate may by law perform.
5. Head office of BankThe head office of the Bank shall be in Harare.
6. Functions of Bank
7. Powers of Bank
8. Bank’s relations with State
9. Publication of Bank’s discount ratesThe Bank shall from time to time fix and publish the rates at which it will discount and re-discount bills, notes and other obligations.
10. Business with banking institutionsThe Bank may maintain accounts on its books for, and accept deposits from, banking institutions, on such terms and conditions as it may determine.
11. Lending powers of Bank and loans to Bank employees
12. Inter-bank clearing and payment arrangementsThe Bank may assist banking institutions in organising facilities for the clearing and settlement of inter-bank payments, including payments by cheque or other instruments, and may for that purpose establish such procedures and issue such directions to banking institutions as it considers appropriate.
13. Discount operations of Bank
Part III – Governor and Deputy Governors
14. Governor and Deputy Governors
15. Term of office of Governor and Deputy Governors
16. Disqualifications for appointment as Governor or Deputy GovernorA person shall not be appointed as Governor or Deputy Governor, and no person shall be qualified to hold office as Governor or Deputy Governor, if—
17. Vacation of office by Governor or Deputy Governor
18. Terms and conditions of office of Governor and Deputy Governors
19. Functions of Governor
20. Delegation of Governor’s functionsSubject to this Act and any directions that the Board may give him or her, the Governor may delegate to any Deputy Governor or to any other officer or employee of the Bank any function conferred or imposed upon him by or in terms of this Act, other than the power of further delegating the function so delegated.[section amended by Act 1 of 2010]
Part IV – Board of the Reserve Bank
21. Board of the Reserve Bank
22. Appointment and conditions of office of directors
23. Disqualifications for appointment as director
24. Vacation of office by director
25. Disclosure of interests by members of Board
26. Functions of Board
27. Chairperson, deputy chairperson of Board
28. Procedure at meetings of Board
29. Committees of Board
29A. Audit and Oversight Committee
29B. Monetary Policy Committee
30. Validity of Board’s decisions and actsNo decision or act of the Board or act done under the authority of the Board shall be invalid solely because—
Part V – Financial provisions
31. Capital of BankThe Bank’s capital stock shall be in the amount of two million United States dollars or its equivalent in other currencies, all of which shall be issued to the State.[section substituted by Act 1 of 2010]
32. Allocation of profits
33. ***[section repealed by Act 1 of 2010]
34. Allocation of losses or gains due to exchange rate fluctuations and pursuit of monetary policies
35. Financial statementsFor each financial year, the accounts of the Bank shall be prepared in accordance with generally accepted accounting practices and shall include—
36. Audit of Bank’s accounts
37. Powers of auditors
38. Investigation into Bank’s affairsThe Minister may at any time cause an investigation to be made into the affairs of the Bank by one or more persons authorised by him in writing to do so, and section thirty-seven shall apply, mutatis mutandis, in relation to any such investigation.
39. Returns by Bank
Part VI – Banknotes and coinage
40. Issue of banknotes
41. Legal tender of banknotes
42. Offences relating to banknotes
42A. ***[section repealed by Act 1 of 2010]
42B. Issue of Reserve Bank vouchers
43. Issue of coins
44. Legal tender of coins
44A. Legal tender of foreign currenciesThe Minister may, in regulations made under section 64, prescribe that, subject to such conditions as may be specified in the regulations, a tender of payment in any currency other than Zimbabwean currency shall be legal tender in all transactions or in such transactions as may be specified in the regulations.[section inserted by Act 5 of 2009]
44B. Legal tender of bond notes and coins
44C. Issuance and legal tender of electronic currency
Part VII – Monetary policy
45. Bank’s responsibility for monetary policyThe Bank, in consultation with the Minister, shall be responsible for the formulation and implementation of the monetary policy of Zimbabwe.
46. Statements of monetary policyIn June and December of each year, the Governor shall submit to the Minister a policy statement containing—
Part VIII – Exchange rate policy, international reserves and exchange control
47. Exchange rate policy
48. Clearing and payment agreementsThe Bank may, either for its own account or for the account of or by order of the State, enter into clearing and payment agreements or any other similar agreement with public or private central clearing institutions outside Zimbabwe.
49. Reserves against domestic and international obligations
50. Reports by dealers in foreign exchangePersons dealing in foreign currency shall provide the Bank with such information as the Bank may require in regard to their foreign currency dealings, and shall provide the information at such times and in such form as may be prescribed.
Part IX – Assistance to foreign regulatory authorities
51. Request for information by foreign regulatory authority
52. Contents of requestA request for assistance in terms of section fifty-one shall contain such information and particulars as may be prescribed:Provided that failure to comply with prescribed conditions shall not be a ground for refusing to grant the request.
53. Power to require information, documents or other assistance
54. Exercise of powers by officers
55. Penalty for failure to comply with requirement to answer questions, etc.
56. Restrictions on disclosure of information
57. Exceptions to restrictions on disclosureInformation to which section fifty-six applies may be disclosed—
Part IXA – Special asset management companies[Part IXA (sections 57A – 57E inserted by Act 12 of 2015]
57A. Establishment of special asset management companies
57B. Immunity of special asset management companies, etc.The immunity of the Bank bestowed by section 63A applies also to any special asset management company, for which purpose references therein the Bank, the Board, the Governor and any employee of the Bank shall be read as references to the company, its board of directors, its chief executive or principal officer and any of its employees.
57C. Powers of Investigation of special asset management companiesSection 47 of the Banking Act applies to a special asset management company in the pursuance of the mandate for which it was established in terms of section 57A (1), as if the company and its employees, are supervisors and inspectors referred to in that section of the Banking Act.
57D. Powers of curatorship of special asset management companiesSection 55 of the Banking Act applies to a special asset management company in the pursuance of the mandate for which it was established in terms of section 57A(1), as if the company (and any of its employees discharging curatorship functions) is the curator referred to in that section of the Banking Act.
57E. Special asset management companies exempt from certain duties, fees and charges
Part X – General
58. Information to banking institutionsThe Bank may establish and maintain an information network for the supply of information to banking institutions in such form as it considers appropriate for the better carrying out of its functions under this Act.
58A. Credit Registry
59. Officers and other employees of Bank
60. Preservation of secrecy
61. Impersonation of member of Board or officer or employee of BankAny person who—
62. Powers of Minister upon non-compliance by Bank with ActIf at any time it appears to the Minister that the Bank has failed to comply with any provision of this Act, he may, by notice in writing, require the Board to make good or remedy the default within a specified time, and the Board shall forthwith take all such steps as are necessary to ensure due compliance with any such provision.
63. Restriction on names of companies
63A. Immunity of Bank, etc.No claim shall lie against the State, the Minister, the Bank, the Board, the Governor, a Deputy Governor or any employee of the Bank for anything done in good faith and without negligence under the powers conferred by this Act.[section inserted by Act 1 of 2010]
63B. Legal proceedings against bankThe State Liabilities Act [Chapter 22:13] applies with necessary changes to legal proceedings against the Bank, including the substitution of references therein to a Minister by references to the Governor.[section inserted by section 14 of Act 5 of 2011]
64. RegulationsThe Minister, in consultation with the Board, may make regulations prescribing anything which in terms of this Act is required to be prescribed or which, in his opinion, is necessary or convenient to be prescribed for carrying out or giving effect to the provisions of this Act.
65. Repeal of Cap. 22:10 and savings
History of this document
31 December 2021 this version
Amended by Finance Act, 2021
30 October 2016
ConsolidationRead this version
13 August 1999