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Exchange Control, International Trade and the International Value of a Currency

Appealed
HH11-12 : BRENNAN'S DIESEL SERVICES (PRIVATE) LIMITED vs TENDA BUS SERVICE (PRIVATE) LIMITED
Ruled By: KUDYA J

In his oral submissions, counsel for the defendant conceded that in the light of the sentiments expressed in Macape (Pty) Ltd v Executrix Estate Forrester 1991 (1) ZLR 315 (SC)…, that the agreement to pay in foreign currency in Zimbabwe was lawful even though actual payment could not be made without the authority of ...
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HH38-12 : PAUL CHIONISO MAWACHA AND CECILIA MAWACHA vs STERBY NHAMO AND INNOCENT NHAMO AN ANOTHER
Ruled By: KUDYA J

Section 5(1)(a)(ii) of the Exchange Control Act [Chapter 22:05] as read with section 4(1)(a)(ii) of the Exchange Control Regulations S.I.109 of 1996 penalizes exchange of any foreign currency with any person other than an authorized dealer. Section 4(1)(a)(ii) and (3) of the Regulations states: "(1) Subject to subsection (3), unless permitted to do so by an exchange ...
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HH05-10 : JACKSON MUGUTI vs UBOXIT WORLDWIDE (PVT) LTD AND TWO OTHERS
Ruled By: MAKARAU JP

The facts giving rise to this claim are commonplace. They epitomize the trading pattern in the country prior to February 2009 when the fiscal authorities officially authorized the populace to trade in multi-currencies that they identified. In testing whether a transaction that is paid for in foreign currency is illegal or not, I have invariably sought guidance ...
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HH25-09 : KWINDIMA FABIOLA vs MVUNDURA LOUIS
Ruled By: MAKARAU JP

The plaintiff issued summons against the defendant on 19 May 2007 seeking an order for the payment of damages in the sum of $20 billion. In her declaration, she averred that she had purchased, from the defendant, certain immovable property situate in the district of Kariba for the sum of $180 billion which she paid in ...
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HH01-09 : CONSTANTINOS BAKARIS vs GEORGE KATTAVENOS
Ruled By: KUDYA J

Share prices are based on a variety of factors. These are grouped under the headings of fundamentals and sentiment. The historical and future performance of the businesses in which Old Mutual operates in, the strength of its management team, the economic environment in which they operate, and the strength of those business units, are some ...
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HH120-09 : EDSON MUDZIVO AND EMILY MUDZIVO vs NOREST NYAMAKOPE
Ruled By: MAKARAU JP

Further, in opposing the application, the respondent avers that, in any event, it was not lawful, in October 2008, for the parties to transact in foreign currency without the approval of the exchange control regulator. Neither of the parties had this prior approval. It is common cause that at the time that the parties entered into the ...
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HH124-09 : MAXWELL TAWODZERA AND MARGARET TAWODZERA vs DANNY MASUKUMA
Ruled By: MAKARAU JP

Having found that the binding agreement between the parties is the first Agreement, in which the price was denominated in foreign currency, the next issue that arises is whether such a contract can find expression in this court. The defendant has argued that the contract is illegal and that this court should apply the ex ...
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HB09-09 : TERENCE ALAN BLAKE and EDWARD GRAHAM BURROUGHS vs TABS-AVOIN LIGHTING (PVT) LTD and ASMARA COMPANY (PVT) LTD and JONATHAN TAFADZWA JERE and JAIROS MTHONISI MOYO
Ruled By: CHEDA J

A contract where payment was to be paid in foreign currency in Zimbabwe would have been unlawful and the parties were aware of this.
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HB27-09 : ZIMBABWE NATIONAL STUDENTS UNION and NUST STUDENTS' REPRESENTATIVE COUNCIL vs NATIONAL UNIVERSITY OF SCIENCE AND TECHNOLOGY and MINISTER OF HIGHER EDUCATION
Ruled By: NDOU J

There is no doubt that the first respondent can statutorily fix fees without appraising the second respondent and the Reserve Bank – see section 4(2)(c) of the National University of Science and Technology Act [Chapter 25:13]. It does not seem that it can do so in foreign currency without Exchange Control Authority approval. It is ...
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HH08-10 : CFX BANK LIMITED vs RTO ENGINEERING [PRIVATE] LIMITED and MESSENGER OF COURT
Ruled By: KARWI J

This is an urgent chamber application for stay of execution pending review. The relevant background to this matter is as follows:On 14 December 2009, the Regional Court sitting at Harare convicted the applicant Bank of contravening section 136 of the Criminal Law (Codification and Reform) Act [Chapter 9:23] and sentenced ...
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HH12-10 : In re: THE ESTATE OF THE LATE PATRICK MATIMURA vs X
Ruled By: BERE J

In any event, it is inconceivable, in my view, that the Law Society would encourage its members to recoup their legal fees in United States dollars for the time when it was illegal in this country to deal in foreign currency without complying with the relevant Exchange Control Regulations.
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HH12-10 : In re: THE ESTATE OF THE LATE PATRICK MATIMURA vs X
Ruled By: BERE J

I am aware of the difficulties which have dissuaded the executor from relying on the tariffs for 2005, 2006, and 2007. The effect of relying on such tariffs is that the executor will be laden with a bill in local currency – which currency has been rendered obsolete, or otiose, by the advent of dollarization. Although ...
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HH21-10 : TIME SAHWIRA MUPINGA vs THE COMMISSION GENERAL ZIMBABWE REVENUE AUTHORITY (ZIMRA) and MINISTER OF FINANCE
Ruled By: MTSHIYA J

The first respondent..., insisted that it had a right to carry out a post importation clearance audit because it was not satisfied that - (a) The applicant was the owner of the vehicle at the time of arrival; (b) The applicant had purchased the vehicle through his own free funds; and (c) The applicant was exempted from ...
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HH25-10 : MAXWELL MATSVIMBO SIBANDA vs GWYNNE ANNE STEVENSON
Ruled By: CHITAKUNYE J

The Deed of Sale did not state where the payment was to be made...,. If it was to be in Zimbabwe it was still going to be contrary to the Zimbabwe laws. Section 10(1) of the Exchange Control Regulations S.I.109 of 1996 states that -“10(1) Unless authorized by any exchange control authority, no person ...
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HH155-10 : BLESSMORE CHANAKIRA vs TAWANDA MAPFUMO and W.R. GABRAITH
Ruled By: CHIWESHE JP

On 29 October 2008 the applicant and the first respondent entered into a written agreement in terms of which the applicant advanced to the first respondent the sum of one hundred thousand United States dollars (the equivalent then of two hundred Old Mutual Ordinary Shares listed on the Stock Exchange). As a return on this ...