Reserve Bank of Zimbabwe Act

Link to law: http://www.parlzim.gov.zw/acts-list/reserve-bank-of-zimbabwe-act-22-15
Published: 2004

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ARRANGEMENT OF SECTIONS

Postponement of expiry date of certain Reserve Bank bearer cheques - [published

herein following the new Section 42A - Editor.]

PART I

PRELIMINARY

Section

1. Short title.

2. Interpretation.

3. Application of Act to certain institutions.

PART II

RESERVE BANK OF ZIMBABWE

4. Continuation of former Reserve Bank.

5. Head office of Bank.

6. Functions of Bank.

7. Powers of Bank.

8. Banks relations with State.

9. Publication of Bank's discount rates.

10. Business with banking institutions.

11. Lending to banking institutions.

12. Inter-bank clearing and payment arrangements.

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 Governor.

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 functions.

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. Chairman and vice-chairman of Board.

28. Procedure at meetings of Board.

29. Committees of Board.

30. Validity of Board's decisions and acts.

PART V

TITLE 22 FINANCIAL PROVISIONS

31. Capital of Bank.

32. Allocation of profits.

33. Reserve provisions.

34. Allocation of losses or gains due to exchange rate fluctuations and

pursuit of monetary policies.

35. Financial statements.

36. Audit of Bank's accounts.

37. Powers of auditors.

38. Investigation into Bank's affairs.

39. Returns by Bank.

PART VI

BANKNOTES AND COINAGE

40. Issue of banknotes.

41. Legal tender of banknotes.

42. Offences relating to banknotes.

42A. Issue of Reserve Bank bearer cheques

43. Issue of coins.

44. Legal tender of coins.

PART VII

MONETARY POLICY

45. Bank's responsibility for of monetary policy.

46. Statements of monetary policy.

PART VIII

EXCHANGE RATE POLICY, INTERNATIONAL RESERVES AND EXCHANGE

CONTROL

47. Exchange rate policy.

48. Clearing and payment agreements.

49. International reserve.

50. Reports by dealers in foreign exchange.

PART IX

ASSISTANCE TO FOREIGN REGULATORY AUTHORITIES

51. Request for information by foreign regulatory authority.

52. Contents of 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 disclosure.

PART X

GENERAL

58. Information to banking institutions.

59. Officers and other employees of Bank.

60. Preservation of secrecy.

61. Acts by persons purporting to be members of Board.

62. Powers of Minister upon non-compliance by Bank with Act.

63. Restriction on names of companies.

64. Regulations.

65. Repeal of Cap 22:10 and savings.

ACT To confer and impose functions on the Reserve Bank of Zimbabwe and to provide for

its management; to regulate the issue of banknotes and coins; to provide for matters

connected with banking, currencies, monetary policy and coinage; to provide for the

supervision of banking institutions; to authorise the provision of information to

foreign regulatory authorities; to repeal the Reserve Bank of Zimbabwe Act [Chapter

22:10]; and to provide for matters connected with or incidental to the foregoing.

ENACTED by the President and the Parliament of Zimbabwe.

[DATE OF COMMENCEMENT : 13th August, 1999.]

PART I

PRELIMINARY

1 Short title

This Act may be cited as the Reserve Bank of Zimbabwe Act [Chapter 22:15].

2 Interpretation

In 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 the 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 other than the Governor or a Deputy

Governor;

"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 or any other Minister to whom the

President may, from time to time, assign the administration of this Act;

[by S.I. 64/2003 - the Minister of Finance and Economic Development. - Editor ]

"monetary policy" means the monetary policy formulated in terms of section forty-

three;

"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]; "Reserve Bank Bearer cheque" means a cheque payable to bearer issued by the

Reserve Bank and specifying a predetermined amount and expiry date thereon.

[inserted by S.I 14/2004 with effect from 30th January,2004; which promulgated the

above new definition in Section (10 ) , presumably to be read into part I of this Act -

Editor.]

"repealed Act" means the Reserve Bank of Zimbabwe Act [Chapter 22:10];

"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

(1) The Minister may, by notice in the Gazette, direct that all or any of the provisions

of this Act relating to banking institutions shall apply, with such modifications and

subject to such terms and conditions as he may specify in the notice, to¾¾

(a) all building societies established in terms of the Building Societies Act

[Chapter 24:02] or any particular such building society or class of such building

societies;

(b) the Post Office Savings Bank operating under the Post Office Savings

Bank Act [Chapter 24:10];

and the provisions concerned shall apply accordingly, notwithstanding anything to the

contrary in the Building Societies Act [Chapter 24:02] or the Post Office Savings

Bank Act [Chapter 24:10].

(2) The Minister may at any time amend or revoke a direction in terms of subsection

(1) or any term or condition thereof.

PART II

RESERVE BANK OF ZIMBABWE

4 Continuation of former Reserve Bank.

The 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 Bank

The head office of the Bank shall be in Harare.

6 Functions of Bank

(1) The functions of the Bank shall be-

(a) to regulate Zimbabwe's monetary system; and

(b) to achieve and maintain the stability of the Zimbabwe dollar; and

(c) to foster the liquidity, solvency, stability and proper functioning of

Zimbabwe's financial system; and

(d) to advance the general economic policies of the Government; and

(e) to supervise banking institutions and to promote the smooth operation

of the payment system; and

( f ) subject to Part VII, to formulate and execute the monetary policy of

Zimbabwe; and

(g) to act as banker and financial adviser to, and fiscal agent of, the State;

and

(h) whenever appropriate, to represent the interests of Zimbabwe in

international or intergovernmental meetings, multilateral agencies and other

organisations in matters concerning monetary policy; and

(i) to provide banking services for the benefit of-

(i) foreign governments; and (ii) foreign central banks or other monetary authorities; and

(iii) international organisations of which Zimbabwe is a party;

and

( j) to participate in international organisations whose objective is to

pursue financial and economic stability through international monetary co-operation;

and

(k) to undertake responsibilities and perform transactions concerning the

State's participation in or membership of international organisations; and

(l) to exercise any functions conferred or imposed upon it by or in terms

of any other enactment.

(2) Except as otherwise provided in this Act or any other enactment, in the exercise

of its functions under this Act, the Bank shall not be subject to the direction or control

of any other person or authority.

7 Powers of Bank

(1) Subject to this Act, in the exercise of its functions the Bank may do all or any of

the following-

(a) make or cause to be made or issue banknotes and coins in accordance

with this Act;

(b) accept money on current account and collect money for customers;

(c) grant loans and advances;

(d) subject to section thirteen, buy, sell, discount or re-discount-

(i) bills of exchange or promissory notes drawn or issued for commercial,

industrial or agricultural purposes;

(ii) bills, notes or other obligations of the State or statutory bodies;

(iii) bills, notes or other obligations issued by itself;

(e) buy, take in exchange, hire or otherwise acquire movable and

immovable property necessary or convenient for the exercise of its functions, and

dispose of or deal in such property whenever necessary;

( f ) buy and sell securities;

(g) invest its staff and pension funds in such manner as the Board may

decide;

(h) buy, sell or deal in precious metals, and hold in safe custody for other

persons gold, securities or other articles of value;

(i) buy and sell foreign currencies, foreign bills of exchange and bills or

other obligations of foreign governments;

( j) open credits and issue guarantees;

(k) establish branches and agencies within Zimbabwe, appoint agents and

correspondents outside Zimbabwe and, with the approval of the Minister, establish

branches or agencies outside Zimbabwe;

(l) effect transfers of money and sell drafts on its branches,

correspondents and agents;

(m) open accounts in foreign countries and act as agent or correspondent

for the International Monetary Fund or for any banking institution or other financial

institution carrying on business in or outside Zimbabwe;

(n) make arrangements or enter into agreements, subject to the consent of

the Minister, with any banking institution or other financial institution in a foreign

country, to borrow, in such manner, at such rates of interest and upon such other

terms and conditions as it may see fit, any foreign currency which it may consider

expedient to acquire;

(o) underwrite any loan proposed to be raised by the State or any statutory

body: Provided that such loan shall be on terms and conditions that, in the

opinion of the Bank, are conducive to its successful placement in the market;

(p) undertake, as agent, the issue and management of loans raised or to be

raised within Zimbabwe by the State or a statutory body;

(q) organise and provide facilities for the collection and clearance of

cheques and similar instruments;

(r) regulate the proceedings and conduct of its business, including the

proceedings at meetings of the Board, and the recording of minutes;

(s) exercise any other powers that may be conferred upon it by or in terms

of any other enactment.

(2) The Bank shall not-

(a) lend or advance moneys to or directly buy, discount or re-discount

bills, notes or other obligations from, the State or any fund established by the State so

that the amount outstanding at any time exceeds the equivalent of twenty per centum

of the previous year's ordinary revenues of the State; or

(b) lend or advance money to the State or any fund established by the

State unless-

(i) the money is denominated in Zimbabwe currency; and

(ii) the loan or advance is either-

A. repayable within twelve months after the end of the financial year in

which it was made; or

B. convertible at the end of the financial year in which it was made into

negotiable bearer securities issued by the State and delivered to the Bank;

or

(c) subject to paragraphs (a) and (b), lend or advance money to any

statutory body unless the loan or advance-

(i) has been approved by the Minister; and

(ii) is repayable within twelve months from the date on which it was

made; and

(iii) if not repaid within the period referred to in subparagraph (ii), is

convertible into negotiable bearer securities issued by the State and delivered to the

Bank.

(3) Nothing in subsection (2) shall prevent the Bank from-

(a) purchasing or selling in a secondary market securities issued by the

State on its own account in excess of the maximum amount referred to in paragraph

(a) of subsection (2) in pursuance of the monetary policy of Zimbabwe; or

(b) investing moneys forming part of its staff and pension funds.

(4) Any amount payable by the State under any security referred to in subparagraph

(iii) of paragraph (c) of subsection (2) shall be paid from the Consolidated Revenue

Fund, which is hereby appropriated to the purpose.

(5) For the purposes of paragraph (a) of subsection (2)-

"ordinary revenues of the State" does not include amounts accruing to the State

through loans, grants or any other form of financial assistance.

8 Bank's relations with State

(1) The Bank shall act as banker to the State.

(2) Nothing in this section shall prevent the State from carrying on transactions in

such manner as the State may require and, if so requested by the State, the Bank shall

make the necessary arrangements to this end.

(3) When authorized by the Minister to do so, the Bank shall act as agent for the

State in the payment of interest and principal and generally in respect of the issue and

management of the public debt of Zimbabwe and additionally, or alternatively, the debts of any statutory body.

9 Publication of Bank's discount rates

The 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 institutions

The 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 to banking institutions

(1) The Bank may, on such terms and conditions as it may determine, act as lender of

last resort for banking institutions, by granting to them or for their benefit, for periods

not exceeding three months-

(a) loans other than those authorised by section 59 of the Banking Act

[Chapter 24:20]; and

(b) contingent commitments.

(2) Every loan or contingent commitment referred to in subsection (1) shall be

secured by any of the assets specified in section 59 of the Banking Act [Chapter

24:20], unless the Bank decides that an unsecured loan or contingent commitment is

justifiable because of exceptional circumstances:

Provided that no such loan or contingent commitment shall be made by the Bank

unless-

(a) in the opinion of the Bank, such loan or contingent commitment is

necessitated by the liquidity requirements of the banking institutions and by the

public interest; and

(b) the Minister has agreed that the loan be granted.

(3) The Bank may extend the period referred to in subsection (1) on such terms and

conditions as the Bank may determine, including terms and conditions specifying the

measures to be taken by the banking institution concerned to meet the Bank's

liquidity requirements.

12 Inter-bank clearing and payment arrangements

The 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

(1) The Bank may, in respect of a banking institution which holds an account with

the Bank, discount the following instruments-

(a) bills of exchange and promissory notes which are payable in

Zimbabwe, whether they are denominated in Zimbabwean currency or a foreign

currency:

Provided that the Bank shall not discount such a bill or note unless it

bears the signatures of at least three solvent parties of which at least one shall be a

banking institution, and matures within three months after its acquisition by the Bank;

and

(b) subject to subsection (2) of section seven, bills, notes and other debt

securities which are issued or guaranteed by the State or by the Bank and which are

payable in Zimbabwe, whether they are denominated in Zimbabwean currency or a

foreign currency:

Provided that the Bank shall not discount such a security unless it

matures within three months after its acquisition by the Bank; and

(c) obligations of statutory bodies.

(2) The discount operations of the Bank shall be subject to such terms andconditions, including the discount rate, as the Bank may determine.

(3) The Bank may, without giving any reasons, refuse to discount any of the

instruments referred to in subsection (1).

PART III

GOVERNOR AND DEPUTY GOVERNORS

14 Governor and Deputy Governors

(1) There shall be a Governor of the Bank and not more than two Deputy Governors

of the Bank, who shall be appointed, subject to subsection (2) and to section sixteen,

by the President after consultation with the Minister.

(2) The Governor and Deputy Governors shall be appointed for their competence and

experience in matters relating to banking, finance and economics.

(3) In the event of-

(a) the absence or temporary incapacity of the Governor, his functions

shall be performed by the Deputy Governor or, as the case may be, by a Deputy

Governor nominated by the Governor;

(b) a vacancy in the office of the Governor, his functions shall be

performed by the Deputy Governor or, as the case may be, by a Deputy Governor

nominated by the President after consultation with the Board and the Minister.

15 Term of office of Governor and Deputy Governors

(1) Subject to subsection (3), the Governor and every Deputy Governor shall hold

office for such period, not exceeding five years, as the President may fix on his

appointment.

(2) Subject to subsection (3), upon the expiry of the term of office of the Governor or

a Deputy Governor, the President, after consultation with the Minister, may re-

appoint him or extend his term of office.

(3) No person shall hold office as Governor or Deputy Governor¾¾

(a) for more than two terms of office; or

(b) for a period or periods which, in the aggregate, exceed ten years:

Provided that a person who has served for such terms or period as Deputy Governor

shall remain eligible for appointment as Governor.

16 Disqualifications for appointment as Governor or Deputy Governor

A 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-

(a) he is a director, shareholder, officer or employee, or a member of any

board or committee, of any banking institution; or

(b) he is a member of Parliament; or

(c) he has been adjudged or otherwise declared insolvent or bankrupt in

terms of a law in force in any country, and has not been rehabilitated or discharged;

or

(d) he has made an assignment to or arrangement or composition with his

creditors in terms of a law in force in any country, and the assignment, arrangement

or composition has not been rescinded or set aside; or

(e) he has been convicted of any offence in any country and sentenced to

a term of imprisonment imposed without the option of a fine, whether or not any

portion of the sentence has been suspended, and he has not received a free pardon; or

( f ) he has been convicted of an offence involving dishonesty in any

country and sentenced to a fine of any amount or to a term of imprisonment of any

duration, whether or not any portion of the sentence has been suspended.

17 Vacation of office by Governor or Deputy Governor

(1) The Governor or a Deputy Governor shall vacate his office and his office shall

become vacant- (a) if he has given the Minister such period of notice in writing of his

intention to resign as may be fixed in his terms and conditions of service or, if no

such period has been fixed, one month after the date on which he gives such notice or

after the expiry of such other period of notice as he and the Minister may agree; or

(b) on the date he begins to serve a sentence of imprisonment, whether or

not any portion has been suspended, imposed without the option of a fine in any

country; or

(c) if he becomes disqualified in terms of section sixteen to hold office; or

(d) if he is required in terms of subsection (2) to vacate his office.

(2) The President, after consultation with the Minister, may require the Governor or a

Deputy Governor to vacate his office if-

(a) he has been guilty of conduct which renders him unsuitable to

continue to hold office; or

(b) he has failed to comply with any term or condition of his office fixed

in terms of section eighteen; or

(c) he becomes mentally or physically incapable of efficiently exercising

his functions.

(3) On the death of, or vacation of office by, the Governor or a Deputy Governor, the

President, in consultation with the Minister, shall appoint a person to fill the vacancy:

Provided that, if on the death of, or vacation of office by, a Deputy Governor another

Deputy Governor remains in office, the President need not fill the vacancy.

18 Terms and conditions of office of Governor and Deputy Governors

(1) The Governor and every Deputy Governor shall hold office on such terms and

conditions, including terms and conditions relating to remuneration and the payment

of allowances, as the Minister may determine.

(2) Except with the permission of the Minister, neither the Governor nor any Deputy

Governor shall engage in any occupation of a commercial, industrial or financial

nature apart from the functions exercisable by him in terms of this Act.

19 Functions of Governor

(1) Subject to this Act and any general directions of policy that the Minister or the

Board may give him, the Governor shall be responsible for the day-to-day

management, control, administration, operation and direction of the Bank.

(2) Without limiting the generality of subsection (1), the Governor-

(a) shall have power to enter into contractual arrangements on behalf of

the Bank; and

(b) shall represent the Bank in any legal proceedings; and

(c) shall report to the Board at least once in every three months on all

matters relating to the administration and conduct of the Bank's operations.

20 Delegation of Governor's functions

Subject to this Act, 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.

PART IV

BOARD OF THE RESERVE BANK

21 Board of the Reserve Bank

(1) There shall be a Board of the Reserve Bank which shall be responsible for

formulating the policy of the Bank and supervising the Bank's administration and

operations.

(2) The Board shall consist of the Governor and every Deputy Governor and not

fewer than five nor more than seven directors. 22 Appointment and conditions of office of directors

(1) Subject to this section and section twenty-three, directors shall be persons who

are or have been actively engaged in financial, commercial, industrial or agricultural

pursuits, appointed by the President after consultation with the Minister.

(2) Unless he vacates his office earlier, a director shall hold office for a period of

four years from the date of his appointment.

(3) On the expiry of the period for which a director has been appointed, he shall

continue to hold office until he has been reappointed or his successor has been

appointed:

Provided that a director shall not hold office in terms of this subsection for more than

six months.

(4) Subject to section twenty-three, a director who resigns or retires shall be eligible

for reappointment to the Board:

Provided that-

(i) a director shall not be reappointed more than once;

(ii) the period for which a director is reappointed shall not exceed four

years.

(5) A director shall hold office on such terms and conditions, including terms and

conditions relating to remuneration and the payment of allowances, as the Board may

fix with the approval of the Minister.

(6) A director may be paid, in addition to the remuneration and allowances referred

to in subsection (5), such recompense for expenses he incurs in connection with his

duties as the Board may determine.

23 Disqualifications for appointment as director

(1) No person shall be appointed as a director and no person shall be qualified to

hold office as a director, if-

(a) he is a director, shareholder, officer or employee, or a member of any

board or committee, of a banking institution; or

(b) he is a member of Parliament; or

(c) he is a member of two or more other statutory bodies; or

(d) he has been adjudged or otherwise declared insolvent or bankrupt in

terms of a law in force in any country, and has not been rehabilitated or discharged;

or

(e) he has made an assignment to or composition with his creditors in

terms of a law in force in any country, and the assignment, arrangement or

composition has not been rescinded or set aside; or

( f ) he has been convicted of any offence in any country and sentenced to

a term of imprisonment imposed without the option of a fine, whether or not any

portion of the sentence has been suspended, and he has not received a free pardon; or

(g) he has been convicted of an offence involving dishonesty in any

country and sentenced to a fine of any amount or to a term of imprisonment of any

duration, whether or not any part of the sentence has been suspended.

(2) For the purposes of paragraph (c) of subsection (1), a person who is appointed to

a council, board or other authority which is a statutory body or which is responsible

for the administration of the affairs of a statutory body shall be regarded as a member

of that statutory body.

24 Vacation of office by director

(1) A director shall vacate his office and his office shall become vacant-

(a) after giving the Minister such period of notice in writing of his

intention to resign as may be fixed in his terms and conditions of service or, if no

such period has been fixed, one month after the date on which he gives such notice orafter the expiry of such other period of notice as he and the Minister may agree; or

(b) on the date he begins to serve a sentence of imprisonment, whether or

not any portion has been suspended, imposed without the option of a fine in any

country; or

(c) if he becomes disqualified in terms of section twenty-three to hold

office; or

(d) if he is required in terms of subsection (2) to vacate his office.

(2) The President, after consultation with the Minister and the Board, may require a

director to vacate his office if-

(a) he has been guilty of conduct which renders him unsuitable to

continue to hold office; or

(b) he has failed to comply with any term or condition of his office fixed

in terms of subsection (5) of section twenty-two; or

(c) if he contravenes section twenty-five; or

(d) he becomes mentally or physically incapable of efficiently exercising

his functions; or

(e) he has been absent without the Board's permission from three

consecutive regular meetings of the Board, of which he has been given not less than

seven days' notice, and the President is satisfied that there was no just cause for the

director's absence.

25 Disclosure of interests by members of Board

(1) Before the Governor or a Deputy Governor or director performs any function as

such, he shall disclose in writing to the President the full extent of¾¾

(a) every occupation, service or employment in which he or his spouse

engages for remuneration; and

(b) all assets held by him or his spouse, in excess of such value as the

President may specify.

(2) As soon as possible after he or his spouse¾¾

(a) commences any occupation, service or employment for remuneration;

or

(b) acquires any asset in excess of such value as the President may have

specified in terms of paragraph (b) of subsection (1);

the Governor and every Deputy Governor and director shall disclose that fact in

writing to the President.

26 Functions of Board

(1) Subject to this Act and any general directions of policy that the Minister may

give the Board, the functions of the Board shall be-

(a) to determine the monetary policy of Zimbabwe, including the setting

of limits on open market operations by the Bank; and

(b) to determine interest rates for discounts and loans by the Bank; and

(c) to determine the reserves that banking institutions are required to

maintain with the Bank in terms of section 30 of the Banking Act [Chapter 24:20];

and

(d) to advise the Minister on matters concerning the foreign exchange

policy of Zimbabwe and to approve measures for determining the foreign exchange

value of the Zimbabwean currency; and

(e) to monitor the financial system of Zimbabwe and to keep under

review the effect of the Bank's monetary policy on that system and on the economy

as a whole; and

( f ) to approve all rules, guidelines and general instructions governing the

conduct of the affairs of the Bank; and (g) to approve all reports and recommendations made by the Bank to the

Minister or to Parliament; and

(h) to approve all advances by the Bank to the State; and

(i) to approve the discounting of instruments having a maturity period of

more than three months from the date of their acquisition by the Bank and, with the

approval of at least four of the members present, to approve each of the Bank's loans

to, or contingent commitments for the benefit of, a banking institution pursuant to

section eleven; and

( j) to establish or close, in or outside Zimbabwe, subsidiaries, branch

offices or agencies of the Bank; and

(k) with the approval of the Minister, to prepare the budget of the Bank;

and

(l) to determine the general terms and conditions of service of the

officers, employees, agents and correspondents of the Bank; and

(m) to make proposals to the Minister for the increase in the authorised

capital of the Bank and, with the consent of the Minister, to establish special reserves

on the books of the Bank and the level of such reserves; and

(n) to approve the annual reports and financial statements of the Bank;

and

(o) to determine the debt securities suitable for the investment of the

financial resources of the Bank, including the staff and pension funds of the Bank.

(2) Subject to this Act, the Board may delegate to the Governor, either absolutely or

subject to conditions, any function conferred or imposed upon it by or in terms of this

Act.

(3) A delegation of a function in terms of subsection (2) shall not preclude the Board

from itself exercising the function concerned.

27 Chairman of Board

(1) The Governor shall be chairman of the Board.

(2) In the absence, temporary incapacity or vacation of office by the Governor, the

Deputy Governor referred to in paragraph (a) or (b), as the case may be, of subsection

(3) of section fourteen shall act as chairman of the Board.

(3) If neither the Governor nor the Deputy Governor referred to in subsection (2) are

present at any meeting of the Board, the members present shall elect one of their

number to preside as chairman at that meeting.

28 Procedure at meetings of Board

(1) A majority of members of the Board shall form a quorum at any meeting of the

Board.

(2) The decision of the majority of the members of the Board present at any meeting

shall constitute the decision of the Board.

(3) At all meetings of the Board each member present shall have one vote on each

question before the Board:

Provided that, in the event of an equality of votes, the person presiding at the meeting

shall have a casting vote in addition to a deliberative vote.

29 Committees of Board

(1) The Board may appoint committees of two or more of its members and may

delegate to them such functions as it thinks fit.

(2) The delegation of functions to a committee in terms of subsection (1) shall not

preclude the Board from itself exercising the functions concerned.

30 Validity of Board's decisions and acts

No decision or act of the Board or act done under the authority of the Board shall be

invalid solely because- (a) the Board did not consist of the full number of members for which

provision is made in section twenty-one; or

(b) a disqualified person sat or acted as a member at the time the decision

was taken or the act was done or authorized, unless at that time the Board knew of his

disqualification.

PART V

FINANCIAL PROVISIONS

31 Capital of Bank

The Bank's capital stock shall be in the amount of two million dollars, all of which

shall be issued to the State.

32 Allocation of profits

(1) The Bank shall establish a general reserve fund to which shall be allocated the

amount of two million dollars together with the further amounts set out in subsection

(2).

(2) The ascertained surplus available from the operations of the Bank during each of

its financial years, after meeting all current expenditures and losses and after making

provision for bad and doubtful debts, depreciation of assets, pensions, gratuities or

other benefits payable to its officers and employees, together with such other items as

are usually provided for by bankers, shall be applied by the Board as follows-

(a) while moneys in the general reserve fund established in terms of

subsection (1) are less than three times the capital of the Bank, ten per centum of the

surplus shall be allocated to that fund and the residue of the surplus shall be paid into

the Consolidated Revenue Fund:

Provided that no payment into the Consolidated Revenue Fund shall

be made if it would result in the assets of the Bank, as reflected on the Bank's balance

sheet, being less than the sum of the Banks assets and unencumbered capital and

reserves;

(b) when moneys in the general reserve fund established in terms of

subsection (1) are equal to or more than three times the capital of the Bank, the whole

of the surplus shall, subject to section thirty-three, be paid into the Consolidated

Revenue Fund.

33 Reserve provisions

(1) The Bank shall maintain a reserve consisting of gold or foreign assets convertible

into gold.

(2) The value of the reserve shall be at least forty per centum of the Bank's foreign

liabilities.

(3) The Bank may, with the approval of the Board, establish additional special

reserves consisting of gold or foreign assets convertible into gold for specific

purposes after making the allocation referred to in subsection (2).

34 Allocation of losses or gains due to exchange rate fluctuations and pursuit of

monetary policies

(1) Any loss suffered by the bank as a result of depreciation in any gold or foreign

assets held by the Bank which is caused by any change in the value of the Zimbabwe

dollar or in the values of foreign currencies or the value of gold in relation to the

Zimbabwe dollar shall be charged to the Consolidated Revenue Fund, and any profit

earned by the Bank as a result of the appreciation in any gold of foreign assets held

by the Bank which is caused by such change shall be paid into the Consolidated

Revenue Fund.

(2) Any payment from the Consolidated Revenue Fund to the Bank under subsection

(1) shall be made upon request by the Bank and any payment by the Bank to the

Consolidated Revenue Fund shall be made in accordance with arrangements approvedby the Minister.

(3) If at any time the Bank suffers loss determined in Zimbabwe dollars as a direct

result of pursuing policies designed to achieve its objectives under this Act,

particularly the maintenance of price stability and the proper functioning of a stable

financial system, such loss shall be borne by the Bank.

(4) For the purposes of subsection (1), a certificate by the Comptroller and Auditor-

General as to the amount of the profit earned or loss suffered by the Bank shall be

evidence of the amount of the profit or loss.

35 Financial statements

For each financial year, the accounts of the Bank shall be prepared in accordance with

generally accepted accounting practices and shall include-

(a) a statement of the Bank's assets and liabilities for that financial year;

and

(b) an operating statement showing the revenue and expenditures of the

Bank for that financial year by reference to the functions carried out by the Bank; and

(c) a statement showing the Bank's cash flows for that financial year; and

(d) a statement of the Bank's commitments as at the close of that financial

year; and

(e) a statement of the Bank's contingent liabilities at the close of that

financial year; and

( f ) a statement of the Bank's accounting policies; and

(g) such other information as the Minister may direct in order to give a

fair reflection of the Bank's financial operations and position for that financial year.

36 Audit of Bank's accounts

(1) The accounts of the Bank shall be audited by one or more persons who are

registered as public auditors in terms of the Public Accountants and Auditors Act

[Chapter 27:12] and are appointed for the purpose by the Minister.

(2) The auditors appointed in terms of subsection (1) shall make a report to the Board

and to the Minister on the Bank' accounts, and in their report shall state whether or

not in their opinion the statements referred to in paragraphs (a) to ( f ) of section

thirty-five give a true and fair view of the Bank's affairs.

(3) In addition to the report referred to in subsection (2), the Minister or the Board

may require the auditors appointed in terms of subsection (1) to provide such other

reports, statements or explanations in connection with the Bank's activities, funds or

property as the Minister or the Board, as the case may be, considers expedient, and

the auditors shall forthwith comply with any such requirement.

(4) If, in the opinion of the auditors appointed in terms of subsection (1)¾¾

(a) they have not obtained any information or explanation they require; or

(b) any accounts or records relating to any accounts have not been kept

properly by the Bank; or

(c) the Bank has not complied with any provision of this Act;

the auditors shall include in their report made in terms of subsection (2) or (3), as the

case may be, a statement to that effect.

(5) The cost of anything done by auditors in terms of this section shall be borne by

the Bank.

37 Powers of auditors

(1) An auditor referred to in section thirty-six shall be entitled at all reasonable times

to require to be produced to him all accounts and records relating to any accounts

which are kept by the Bank or its agents and to require from any member of the

Board or any officer, employee or agent of the Bank such information and

explanations as, in the auditor's opinion, are necessary for the purposes of thatsection.

(2) Any member of the Board or any officer, employee or agent of the Bank who¾¾

(a) fails or refuse to provide an auditor with any information or

explanation required by him in terms of subsection (1); or

(b) hinders or obstructs an auditor in the exercise of his functions in terms

of section thirty-six;

shall be guilty of an offence and liable to a fine not exceeding level four or to

imprisonment for a period not exceeding three months or to both such fine and such

imprisonment.

[amended by Act 22 of 2001 with effect from the 10th September, 2002.]

38 Investigation into Bank's affairs

The 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

(1) In this section¾¾

"Treasury" means the Secretary of the Ministry for which the Minister is responsible

or such other officer in that Ministry as may be deputed by the Secretary to perform

his functions in terms of this section.

(2) The Bank shall-

(a) as soon as practicable after the close of business every Friday or,

where any Friday is a public holiday, on the nearest preceding business day, submit to

the Treasury a return in a form approved by the Minister and containing a statement

of the Bank's liabilities and assets; and

(b) within three months after the close of its financial year, transmit to the

Treasury two copies of its annual accounts signed by the Governor, every Deputy

Governor and the Secretary of the Bank and certified by the Comptroller and Auditor-

General:

Provided that a director authorized to do so by the Board may sign the

accounts, instead of the Governor or any Deputy Governor; and

(c) when called upon to do so by the Minister by notice in writing, make

to the Minister, within the period specified in the notice, such further returns as may

be so specified.

(3) The Treasury shall cause every return received in terms of paragraph (a) of

subsection (1) to be published in the Gazette as soon as practicable after it has been

received.

(4) The Minister shall lay a copy of every account received in terms of paragraph (b)

of subsection (1) before Parliament on one of the fourteen days on which Parliament

next sits after the account is received by him.

(5) The Minister may at any time direct that subsections (2) and (3) shall be

suspended for such period as he may determine if, in his opinion, it is in the public

interest that they be suspended.

PART VI

BANKNOTES AND COINAGE

40 Issue of banknotes

(1) Subject to subsection (3), the Bank shall have the sole right to make or cause to

be made and to issue banknotes in Zimbabwe.

(2) The President shall determine the denominations, designs, form or material which

shall be used in the making of banknotes.

(3) The Bank shall not issue any banknotes unless the Minister, by statutory

instrument, has specified the matters determined by the President in respect of thesebanknotes in terms of subsection (2).

41 Legal tender of banknotes

(1) A tender of a banknote which has been issued by the Bank and which has not

been demonetised in terms of subsection (2) shall be legal tender in payment within

Zimbabwe of the amount expressed in the note.

(2) The President may, by statutory instrument, call in and demonetise any banknotes

issued by the Bank, and shall likewise determine the manner in which and the period

within which payment for such banknotes shall be made to the holders thereof.

42 Offences relating to banknotes

(1) In this section-

"banknote" includes any banknote which has at any time been legal tender in

Zimbabwe.

(2) Any person who-

(a) without the authority of the Bank, engraves or makes upon any

material whatsoever any words, figures, letters, marks, lines or devices, the print of

which resembles in whole or in part any words, figures, letters, marks, lines or

devices peculiar to and used in or upon any banknote; or

(b) wilfully defaces, soils or damages any banknote or writes or places

any drawing thereon or attaches thereto anything in the nature of an advertisement; or

(c) knowing that it is to be used for an unlawful purpose, has in his

possession any material whatsoever upon which has been engraved or made any such

words, figures, letters, marks, lines or devices as are mentioned in paragraph (a);

shall be guilty of an offence and liable-

(i) in the case of an offence referred to in paragraph (a) or (b), to

imprisonment for a period not exceeding seven years;

(ii) in the case of an offence referred to in paragraph (c), to a fine not

exceeding level four or to imprisonment for a period not exceeding three months or to

both such fine and such imprisonment.

[amended by Act 22 of 2001 with effect from the 10th September, 2002.]

[inserted by Act 22/2001 with effect from 10th September, 2001]

42A Issue of Reserve Bank bearer cheques

(1) If the Bank is of the opinion that a shortage of banknotes is imminent or is in

existence which needs to be dealt with urgently in the interests of public order, it

may, with the consent of the Minister, authorise the issue of Reserve Bank bearer

cheques specifying thereon a predetermined amount and a expiry date not exceeding

twelve months from the date of issue:

Provided that the Minister may, by notice in a statutory instrument or in the Gazette,

postpone the expiry date of any particular issue of Reserve Bank bearer cheques by a

period not exceeding twelve months.

(2) A tender of a Reserve Bank bearer cheque which has not expired shall be legal

tender in payment within Zimbabwe of the amount expressed in the cheque.

(3) Section forty-two shall apply to Reserve Bank bearer cheques as they apply to

banknotes.

[inserted by S.I 14/2004 with effect from 30th January,2004; which also promulgated

the following new Section (12 ), presumably to be read as part of this Act - Editor.]

42B Postponement of expiry date of certain Reserve Bank bearer cheques

The expiry date of every Reserve Bank bearer cheque specifying an expiry date of

31st January, 2004 or 31st June, 2004, is hereby postponed to the 31st December,

2004.

43 Issue of coins

(1) Subject to subsection (6), the Bank shall have the sole right to make or cause tobe made and to issue coin in Zimbabwe.

(2) No piece of gold, silver, copper, bronze or nickel, or of any metal or mixed metal

of any value whatsoever, shall be made in the likeness of or used as a coin or token

for money except to the order of the Bank.

(3) All the coins to be made and issued under this Act shall be minted at a mint

approved for the purpose by the Minister.

(4) Subject to subsections (5) and (6), the Bank may cause to be made and may issue

coins of gold and of silver, bronze, cupro-nickel or other metal or mixed metal.

(5) The President shall determine the denominations and designs of any coins to be

made and issued in terms of this section, the standard composition and the standard

mass of such coins and the remedy or variation from the standard composition or

standard mass which shall be allowed in the making of the coins.

(6) The Bank shall not issue any coins unless the Minister, by statutory instrument,

has specified the matters determined by the President in respect of those coins in

terms of subsection (5).

44 Legal tender of coins

(1) In this section-

"coins of current mass" means coins which have not been-

(a) impaired, diminished or lightened otherwise than by fair wear and

tear; or

(b) defaced by having any name, word, number or device stamped

thereon.

(2) A tender of payment of money within Zimbabwe if made in coins of current mass

which have not been demonetised in terms of subsection (3), shall be legal tender-

(a) in the case of coins in denominations higher than five cents, for the

payment of an amount not exceeding two thousand cents;

(b) in the case of coins in the denominations of five cents and under, for

the payment of an amount not exceeding two hundred cents.

(3) The President may, by statutory instrument, demonetise any coins issued by the

Bank and shall likewise determine the manner in which and the period within which

payment for such coins shall be made to the holders thereof.

PART VII

MONETARY POLICY

45 Bank's responsibility for monetary policy

The Bank, in consultation with the Minister, shall be responsible for the formulation

and implementation of the monetary policy of Zimbabwe.

46 Statements of monetary policy

In June and December of each year, the Governor shall submit to the Minister a

policy statement containing-

(a) a description of the monetary policy to be followed by the Bank

during the next succeeding six months, and a statement of the reasons for those

policies; and

(b) a statement of the principles that the Bank proposes to follow in the

implementation of the monetary policy; and

(c) an evaluation of the monetary policy and its implementation for the

last preceding six months.

PART VIII

EXCHANGE RATE POLICY, INTERNATIONAL RESERVES AND EXCHANGE

CONTROL

47 Exchange rate policy

(1) The exchange rate policy of Zimbabwe shall be formulated by the Minister in consultation with the Board, and in doing so the Minister shall ensure that the

exchange rate policy is consistent with the objectives of the monetary policy of

Zimbabwe.

(2) The Bank shall be responsible for implementing the exchange rate policy

formulated in terms of subsection (1).

(3) The Bank may, for the purpose of maintaining the value of the Zimbabwe dollar

and for such other purposes as it considers necessary or expedient, buy, sell, and hold

gold and foreign exchange assets.

48 Clearing and payment agreements

The 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 International reserve

(1) The Bank shall establish and maintain an international reserve which shall consist

of all or any of the following assets-

(a) gold;

(b) foreign exchange in the form of notes and coins or account balances

held by the Bank abroad in foreign currencies;

(c) any other internationally recognised reserve assets, including-

(i) the entitlement to make reserve tranche purchases from the

International Monetary Fund; and

(ii) the holdings of Zimbabwe of special drawing rights of the

International Monetary Fund;

(d) bills of exchange and promissory notes, payable in foreign currencies;

(e) securities that have been issued or guaranteed, and net entitlements of

the bank under loan agreements, forward purchase and repurchase agreements, swap

agreements, options and other agreements that have been concluded with or

guaranteed by, foreign states, foreign central banks or international financial

organisations, and that are denominated and provide for payment in foreign

currencies.

(2) The Bank shall, to the best of its ability, maintain the international reserve at a

level which, in the Bank's opinion, will be adequate for the execution of the monetary

and exchange rate policies of Zimbabwe and for the prompt settlement of the

country's international obligations.

(3) If the international reserve has declined or, in the opinion of the Bank, is in

danger of declining to such an extent as to jeopardise the execution of the monetary

or exchange rate policies of Zimbabwe or the prompt settlement of the country's

international obligations, the Bank shall submit to the Minister-

(a) a report on the international reserve position specifying the causes

which have led or may lead to such a decline, together with such recommendations as

it considers necessary to remedy the situation; and

(b) such further reports and recommendations as the Bank considers

advisable until such time as, in its opinion, the situation has been remedied.

50 Reports by dealers in foreign exchange

Persons 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

(1) Subject to this Part, if a foreign regulatory authority requests the Governor forassistance in connection with inquiries being carried out for the purpose of its

regulatory functions, the Governor shall grant the assistance sought if he is satisfied

that it is in the public interest to do so.

(2) In deciding whether it is in the public interest to grant assistance in terms of

subsection (1), the Governor may take into account all or any of the following

factors-

(a) whether corresponding assistance would be given by the foreign

country to the Governor or an authority exercising regulatory functions in Zimbabwe;

(b) whether the inquiries relate to the possible breach of a law or other

requirement which has no close parallel in Zimbabwe or involves the assertion of a

jurisdiction not recognised by Zimbabwe;

(c) the seriousness of the matter to which the inquiries relate and the

importance to the inquiries of the information sought in Zimbabwe;

(d) whether the assistance could be sought and granted under any

enactment relating to mutual assistance in civil or criminal matters.

(3) The Governor may refuse to grant assistance in terms of subsection (1) unless the

foreign regulatory authority undertakes to make such contribution towards the costs

of exercising his functions under this Part as the Governor considers appropriate.

52 Contents of request

A 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

(1) In this section-

"documents" includes information recorded in any form and, where information is

recorded otherwise than in legible form, the power to require its production includes

the power to require the production of a copy of it in legible form.

(2) For the purpose of providing assistance requested by a foreign regulatory

authority in terms of section fifty-one, the Governor may order any person-

(a) to appear before him at a specified time and place and answer

questions or otherwise furnish information with respect to any matter relevant to the

inquiries; and

(b) to produce at a specified time and place any documents which appear

to the Governor to relate to any matter relevant to the inquiries; and

(c) otherwise to give him such assistance in connection with the inquiries

as he is reasonably able to give.

(3) For the purposes of subsection (2), the Governor shall have the same powers as a

commissioner under the Commissions of Inquiry Act [Chapter 10:07], other than the

power to order a person to be detained in custody, and sections 9 to 13 and 15 to 18

of that Act shall apply, mutatis mutandis, in relation to the exercise of the functions of

the Governor under subsection (1).

(4) A person shall not under this section be required to disclose information or

produce a document which he would be entitled to refuse to disclose or produce in a

court of law on grounds of confidentiality as between client and legal practitioner, but

a legal practitioner may be ordered to furnish the name and address of his client.

(5) Where a person claims a lien on a document, its production in terms of this

section shall be without prejudice to his lien.

54 Exercise of powers by officers

(1) The Governor may delegate to any officer of the Bank or any other competent

person any of the powers conferred on him by section fifty-three. (2) A delegation in terms of subsection (1) shall not be made except for the purpose

of investigating-

(a) the affairs, or any aspects of the affairs, of a person specified in the

delegation; or

(b) a specified subject-matter;

by a person who, or a subject-matter which, is the subject of the inquiries being

carried out at the request of a foreign regulatory authority.

(3) No person shall be compelled to comply with a requirement imposed by a person

exercising powers by virtue of a delegation in terms of subsection (1) unless he has

produced evidence of his authority.

(4) A person shall not by virtue of a delegation in terms of subsection (1) be required

to disclose any information or produce any documents in respect of which he owes an

obligation of confidence by virtue of carrying on the business of banking unless-

(a) the imposing on him of a requirement with respect to such information

or documents has been specifically authorized by the Governor; or

(b) the person to whom the obligation of confidence is owed consents to

the disclosure or production.

(5) Where in terms of subsection (1) the Governor delegates powers to a person other

than an officer of the Bank, that person shall report to the Governor in such manner as

the Governor may require on the exercise of the powers and the results of exercising

them.

55 Penalty for failure to comply with requirement to answer questions, etc.

(1) Any person who without reasonable excuse fails to comply with a requirement

under section fifty-three, whether by the Governor or his delegate shall be guilty of an

offence and liable to a fine not exceeding level five or to imprisonment for a period

not exceeding six months or to both such fine and such imprisonment.

[inserted by Act 22/2001 with effect from 10th September, 2002.]

(2) Any person who, in response to a requirement under section fifty-three, whether

by the Governor or his delegate furnishes information which he knows to be false or

misleading in a material particular, or recklessly furnishes information which is false

or misleading in a material particular, shall be guilty of an offence and liable to a fine

not exceeding level seven or to imprisonment for a period not exceeding two years or

to both such fine and such imprisonment.

[inserted by Act 22/2001 with effect from 10th September, 2002.]

56 Restrictions on disclosure of information

(1) Subject to section fifty-seven, any information relating to the business affairs of a

person which is-

(a) supplied by a foreign regulatory authority in connection with a request

for assistance; or

(b) obtained in terms of section fifty-three;

shall not be disclosed for any purpose by the Governor or his delegate or by any

person obtaining the information directly or indirectly from him, without the consent

of the person from whom the Governor obtained the information or the person to

whom it relates.

(2) Information shall not be treated as information to which this section applies if it

has been made available to the public by virtue of being disclosed in any

circumstances in which, or for any purpose for which, disclosure is not prohibited by

this section.

(3) Any person who contravenes this section shall be guilty of an offence and liable

to a fine not exceeding level seven or to imprisonment for a period not exceeding two

years or to both such fine and such imprisonment. [inserted by Act 22/2001 with effect from 10th September, 2002.]

57 Exceptions to restrictions on disclosure

Information to which section fifty-six applies may be disclosed-

(a) to any person with a view to the institution of, or otherwise for the

purposes of any criminal, civil or disciplinary proceedings against the concerned

person; or

(b) for the purpose of enabling or assisting a public authority with an

interest in the matter to discharge any relevant function; or

(c) to the Minister, if the disclosure is made in the interests of investors or

in the public interest; or

(d) if the information is or has been available to the public from other

sources; or

(e) in a summary or collection of information framed in such a way as not

to enable the identity of any person to whom the information relates to be ascertained;

or

( f ) in pursuance of any obligation to the public.

PART X

GENERAL

58 Information to banking institutions

The 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.

59 Officers and other employees of Bank

(1) The Bank may appoint such officers, other than a Governor or Deputy Governor,

and other employees as it considers to be necessary for the efficient conduct of the

business of the Bank.

(2) Officers and other employees of the Bank referred to in subsection (1) shall hold

office for such period or periods, receive such salaries and allowances and be subject

to such other terms and conditions of service as may be determined in terms of this

Act.

(3) The Board may, out of the funds of the Bank, establish and maintain, or

contribute to, a pension fund for the Governor, every Deputy Governor and other

officers and employees of the Bank and their dependants.

60 Preservation of secrecy

(1) Except for the purpose of the performance of his functions or when lawfully

required to do so by any court or under any enactment, no director, officer, employee

or agent of the Bank shall disclose to any person any information relating to the

affairs of the Bank or of a customer of the Bank which he has acquired in the course

of the performance of his functions.

(2) Any person who contravenes subsection (1) shall be guilty of an offence and

liable to a fine not exceeding level seven or to imprisonment for a period not

exceeding two years or to both such fine and such imprisonment.

[inserted by Act 22/2001 with effect from 10th September, 2002.]

61 Acts by persons purporting to be members of Board

Any person who-

(a) not having been appointed as a member of the Board, purports to act,

whether inside or outside Zimbabwe, as a member of the Board; or

(b) whether inside or outside Zimbabwe, does any act or omission in

obedience to the direction of a person referred to in paragraph (a), knowing that the

person was not a member of the Board;

shall be guilty of an offence and liable to a fine not exceeding one hundred thousand

dollars or to imprisonment for a period not exceeding five years or to both such fine

and such imprisonment.

62 Powers of Minister upon non-compliance by Bank with Act

If 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

(1) Except with the consent of the Registrar, no company shall be registered under

the Companies Act [Chapter 24:03] by a name, and no person shall, for the purposes

of business, use any name, which includes, in conjunction with the word "bank",

"bankers", "banking" or "saving", any of the words "central", "national", "reserve",

"State", "Zimbabwe" or "Zimbabwean".

(2) If a company, through inadvertence or otherwise, is registered, whether originally

or by reason of a change of name, by a name which is in conflict with subsection (1),

the Registrar, by order in writing, may order the company to change its name and the

company shall do so within a period of six weeks from the date of the written order or

within such longer period as the Registrar may allow.

64 Regulations

The 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

(1) The Reserve Bank of Zimbabwe Act [Chapter 22:10] is repealed.

(2) Notwithstanding subsection (1)-

(a) any person appointed as a Governor, Deputy Governor or director

under the repealed Act shall continue in office for the unexpired term of his office;

(b) any person appointed as an officer, other than a Governor or Deputy

Governor, or as an employee, agent or correspondent of the Bank under the repealed

Act shall continue in office as if he had been appointed in terms of this Act;

(c) any statutory instrument, notice or instruction which, immediately

before the date of commencement of this Act, was in force under the repealed Act

shall continue in force mutatis mutandis, as if it had been made under the appropriate

provision of this Act and may be amended or repealed accordingly;

(d) any direction given or decision, order or other thing whatsoever made,

done or commenced which, immediately before the date of commencement of this

Act, had or was capable of acquiring force and effect in terms of the repealed Act

shall continue to have or, as the case may be, to be capable of acquiring force and

effect as if it had been given, made, done or commenced, as the case may be, in terms

of this Act;

(e) the Governor, Deputy Governors and directors referred to in paragraph

(a) shall, as soon as practicable after the date of commencement of this Act, make the

disclosure required by section twenty-five.