Africa > Zimbabwe
Rapid depreciation of the parallel market rate in 2002 gave exporters little incentive to surrender receipts through the official system, and inflows into the RBZ remained low. The government responded by raising the surrender rate and tightening exchange restrictions in November 2002. Faced with increasing foreign exchange shortages, the government eventually depreciated the official rate for exports in end-February 2003, but to date with little effect.
Abstract
This volume, by Joseph Gold, discusses some of the major letgal effects of fluctuating exchange rates in both public international law and national law. The problems and similarities in the solutions are reviewed, and the author recommends further developments in the law.
Abstract
The Articles of Agreement (Articles) of the International Monetary Fund (IMF) and the practices of the IMF under that treaty are the principal sources of public international law on the exchange rates of the currencies of member states (members) of the IMF. By the end of September 1990, there were 154 members, among which a great variety of political and economic systems were represented. The most notable nonmembers were the Union of Soviet Socialist Republics and Switzerland, but the latter country and a number of other countries have applied for membership.
Abstract
The fluctuation of exchange rates has given rise to problems of allocating the advantage or disadvantage resulting from changes in exchange rates. In one situation, the problem is bilateral, arising between the parties to a transaction or series of transactions. In the case of disagreement between them on the appropriate exchange rate for settlement when there are two or more possible rates, the advantage that one party enjoys because of the rate that is chosen is matched by the correlative disadvantage suffered by the other party. This kind of problem arises in many forms between the parties to a contract. Sometimes, the judicial solution of a problem may depend on interpretation of the contract.1 In other cases, the outcome may depend on the interpretation of an international convention,2 or the way in which a particular legal concept, such as restitutio in integrum, is applied.3 In some cases, courts have relied on the proposition that a party should have taken steps to protect itself against exchange risk in accordance with the normal practice of the trade in which the transaction or transactions occur.4 It may even be possible to imply a term that a party is to behave in this way.
Abstract
Fluctuations in exchange rates can have disturbing and even catastrophic effects on contracts, particularly if performance is necessary over a long period or at a time far ahead. As a consequence, what are known as hardship clauses have become common.1 A hardship clause can be described as a term of a contract under which the contract can be reviewed if a change in circumstances occurs that fundamentally modifies the initial balance between the obligations of the parties, so that performance, though not impossible, becomes unusually onerous for one party.