RBZ Moves To Calm Fears Over Government Plan To Pay Suppliers In ZiG

RBZ Says ZiG Payments For Suppliers Will Not End Multicurrency System

Zimbabwe’s central bank has moved to calm growing fears about the possible impact of the government’s plan to pay all public-sector suppliers and contractors exclusively in local currency, ZiG.

The Reserve Bank of Zimbabwe (RBZ) says businesses that receive ZiG payments will still be able to access foreign currency through the official market for genuine import needs. Authorities also insist the move does not mean the end of the country’s multicurrency system.

The reassurances came in a press statement issued on 16 March 2026 by RBZ Governor Dr John Mushayavahu following the government’s announcement that suppliers will be paid only in ZiG.

RBZ Says Suppliers Can Access Forex On Official Market

In its statement, the central bank said suppliers paid in local currency would not be forced to source foreign currency on the parallel market.

Introducing the statement, the Reserve Bank said the new policy supports the Government’s efforts to strengthen the use of the local currency.

“The Reserve Bank welcomes the pronouncement by the Minister of Finance, Economic Development and Investment Promotion, Prof. Mthuli Ncube on implementation of the National Standard Price List to guide Public Sector procurement,” the Reserve Bank said.

The bank said businesses paid in ZiG would still be able to buy foreign currency on the official Willing-Buyer Willing-Seller (WBWS) Interbank Foreign Exchange Market.

“Providers of goods and services to the Public Sector that will receive payment in ZiG will have access to foreign currency on the Willing-Buyer Willing-Seller Interbank Foreign Exchange Market for their bona fide import requirements,” said Dr Mushayavahu.

Authorities say the arrangement is meant to prevent pressure on the parallel market exchange rate.

Central Bank Says Zimbabwe Has Enough Forex

The Reserve Bank also sought to reassure businesses and the public that Zimbabwe has enough foreign currency inflows to meet demand.

According to the central bank, foreign currency receipts reached about US$16 billion (about R299 billion) in 2025.

“The country has enough foreign currency to cover all bona fide foreign currency demand for settling foreign payment transactions,” the Reserve Bank said.

The central bank added that increased forex inflows have helped build strategic reserves.

“Increased foreign currency receipts, up to US$16 billion in 2025, have supported the Reserve Bank’s build-up of strategic foreign currency reserves.”

Authorities also pointed to low inflation figures as evidence that economic stability is improving.

“Single digit inflation levels achieved in January (4.1%) and in February 2026 (3.85%), show that inflation and exchange rate expectations have been anchored.”

Multicurrency System Still In Place

The Reserve Bank also clarified that paying suppliers in ZiG does not mean the multicurrency system has been scrapped.

Officials said Zimbabwe will only move fully to the local currency when certain economic conditions are met.

“The stance taken by Government to pay its local suppliers and contractors exclusively in ZiG does not signal the end of the multicurrency system.”

The central bank added that the shift to a single currency will only happen after several economic benchmarks are achieved.

“The country will only transition to the exclusive use of local currency when all the necessary conditions precedent have been successfully met.”

Authorities say these conditions include stronger demand for ZiG and broader use of the currency across the economy.

The RBZ also pledged to maintain stability in both prices and the exchange rate going forward.

“The Reserve Bank affirms its strong commitment to sustainably maintain the current price and exchange rate stability, which is critical to safeguarding the value of the ZiG.”